TikTok will become a separate company in the USA, partly owned by Oracle

TikTok will become a separate company in the USA, partly owned by Oracle


According to the Financial Times, Oracle Corporation intends to acquire a stake in TikTok as part of a recently announced deal. It is assumed that the new agreement will not separate the US segment of TikTok from the platform at the regional level, but will create a separate legal entity that will own the application in the region and a minority stake in which will be owned by Oracle.

According to reports, Oracle will also ensure the security of stored and processed data of American users in accordance with the recommendations of the Committee on Foreign Investment of the United States (CFIUS). Recall that the headquarters of TikTok is already located in the United States and nominally does not depend on the parent company ByteDance. The main change that was made to the deal is Oracle’s minority stake, the size of which remains unknown. While Oracle’s presence will make the new venture more independent, it is likely that the company created in this way will continue to rely on algorithms and applications developed and deployed by ByteDance.

It is also unclear if the new agreement will change the way TikTok works, or if it will somehow address the security issues that led to a possible ban on the popular short video service in the US. According to former Facebook security chief Alex Stamos, “a deal that will host Oracle without source code and significant operational changes will not address any concerns about TikTok“.



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