Economy

Deal between Oracle and TikTok not enough for US | Financial

Those concerns are voiced by Secretary of State Mike Pompeo, among others. His colleagues William Barr of Justice and Steven Mnuchin of Finance have also been briefed on the proposed deal and are now looking into it. Ultimately, President Donald Trump makes a decision about approving the agreement. It is unclear to what extent he is inclined to listen to the concerns of his ministers.

TikTok had to be sold from the US to an American company for security reasons. The Americans believe that the Chinese government has access to the data of the users of the popular videos app as long as it is in the hands of the Chinese ByteDance. That company talked to Microsoft, among others, but eventually reached an agreement with Oracle.

That deal is nowhere near a takeover. ByteDance would place all of TikTok’s activities, not just the American ones, in a company based in the US. User data would also be stored in the US. Oracle then becomes involved in the storage and operations of the American TikTok company. The software maker would also take a minority stake in this, but ByteDance owns more than half of the company.

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