Source: Oracle has won the bidding for the US operations of TikTok as a “trusted tech partner”; the deal will likely not be structured as an outright sale

Deal, which is likely not to be structured as an outright sale, will face White House review

Wall Street Journal 2020-09-14

Discussion

@jolingkent Jo Ling Kent on x
NEWS: A source directly familiar with the deal tells me that Oracle has been chosen to acquire TikTok US as the technology partner.
@parkermolloy Parker Molloy on x
Probably just a coincidence, I'm sure https://twitter.com/...
@alexstamos Alex Stamos on x
A deal where Oracle takes over hosting without source code and significant operational changes would not address any of the legitimate concerns about TikTok, and the White House accepting such a deal would demonstrate that this exercise was pure grift. https://twitter.com/...
@shellen Jason Shellen on x
For folks outside tech this is like Chevron buying VW. https://twitter.com/...
@mattyglesias Matthew Yglesias on x
Tik Tok ending up in Oracle's hands via an opaque process is a great example of how Trump's preference for irregular modes of conducting governance (there was bipartisan support in congress for a move, no reason he couldn't have used proper channels) is a corrupting influence.
@levie Aaron Levie on x
Sure, it seems unusual to have Oracle run TikTok. But who will have the last laugh when the TikTok influencers start recommending HR and Finance systems in all their videos.
@andrewrsorkin Andrew Ross Sorkin on x
Reminder: ByteDance originally was going to make @Microsoft its “tech partner” (cloud host) w/minority interest early this summer. Trump administration said ByteDance needed to sell full control of US biz. Now Trump is discussing accepting “tech partner” deal w/ @Oracle? C'mon.
@anildash Anil Dash on x
The grift is very straightforward. https://twitter.com/...
@shaft Leslie Miley on x
Whoever supports the current administration will have their bid accepted. Welcome to corruption 101. The only required course from trump university. https://twitter.com/...
@moenichedee Monish on x
Oracle's ID graph (the secret sauce that powers Oracle's DMP) is already pretty strong, identifying ~90% US online population. Imagine the possibilities with TikTok layered in here. The long term game plan *has* to be to get as good as Facebook.
@profgalloway Scott Galloway on x
Oracle acquiring TikTok ... it makes more sense if I were to swing w/ Ted Cruz. #ProfGShow #WinnersandLosers #YouTube https://twitter.com/...
@levie Aaron Levie on x
That's totally what happened to our bid as well. https://twitter.com/...
@xor Parker Higgins on x
well it'll be nice for a new generation to grow up resenting oracle for destroying software that had been important to them
@karaswisher Kara Swisher on x
Full of sound and fury, signifying nothing but a sweet cloud deal for a friend of Trump's: Oracle was chosen as the winner in a deal for TikTok's U.S. operations https://www.wsj.com/...
@ow @ow on x
What is even happening lmao https://www.theverge.com/...
@carnage4life Dare Obasanjo on x
I wonder what happens to this Google Cloud services deal with TikTok? 🤔https://www.theinformation.com / ...
@carnage4life Dare Obasanjo on x
So Oracle won but will be a “trusted tech partner” as opposed to an outright sale. It's going to be wild if this just turned out to be a way for Oracle to wrangle a cloud hosting deal from TikTok with a bunch of spectacle and drama thrown in. https://www.wsj.com/...
@sirajahashmi Siraj Hashmi on x
watch Oracle buy TikTok, flip it with an extreme makeover, sell it to Microsoft at a significant profit, where it then dies like the Zune. https://twitter.com/...
@migueldeicaza Miguel de Icaza on x
Maybe Oracle will stay true to their ethos and sue Facebook over interface copyright infringement. https://twitter.com/...
@evan_greer Evan Greer on x
Absolute proof we are living in a very stupid simulation https://twitter.com/...
@kantrowitz Alex Kantrowitz on x
Oracle wins. But it won't be an outright sale, rather a “trusted tech partner.” So: No sale, no shutdown. But plenty of spectacle. https://www.wsj.com/... https://twitter.com/...
@jasminmuj @jasminmuj on x
Amazing how quickly patronage economics have become the norm in U.S.: “Oracle has important ties to Trump's admin. Catz was a member of...Trump's transition team...Ellison hosted a fundraising event for Trump's...campaign at one of his California homes.” https://www.cnbc.com/...
@cgasparino Charles Gasparino on x
BREAKING: @tiktok_us was NOT sold based on what we know. @Oracle is now a “trusted partner.” Real question: does @POTUS allow a “trusted partner” to run @tiktok_us that is his political supporter runs when he demanded an outright sale? https://twitter.com/...
@stevekovach Steve Kovach on x
Also, the “Larry Ellison raising money for Trump” thing is important, but most are ignoring the fact that Oracle CEO Safra Catz has been chummy with the president since before his inauguration. She even served on his transition team.
@campuscodi Catalin Cimpanu on x
All TikTok users will now be prompted to install JRE by the end of the year or pay. Oracle will immediately sue all other social media apps for API copyright infringements. Don't know which exactly, but the lawyers will figure it out https://twitter.com/...
@scobie Omid Scobie on x
Looks like TikTok's future in the US is safe. @WSJ reporting that Oracle got the winning bid for @tiktok_us' operations. Coincidence that they were the only bidder with a Trump-supporting CEO (who held a huge fundraiser for the US President last year)? https://www.nytimes.com/...
@alexstamos Alex Stamos on x
/me starts archiving all of the Tweets from politicians talking about all of the dangers of TikTok to build pressure for a deal so we can measure them against the final result.
@dangillmor Dan Gillmor on x
Deleting TikTok account the minute Oracle takes control. Of all the big tech companies, Oracle is the one in which I have the least amount of trust. https://twitter.com/...
@karaswisher Kara Swisher on x
FYI TikTok signed a three year cloud services deal with Google in May of 2019 for $800m. Whither that? Who knows?
@austinnotduncan Austin Evans on x
Probably less of a huge deal than it could have been (eg Microsoft buying TikTok outright) but seems like a clear path for TT to remain in the US. https://twitter.com/...
@marlownyc Marlow Stern on x
Everything about this stinks. Some backstory: https://www.nytimes.com/...
@larakiara Lara O'Reilly on x
This doesn't seem very ambitious — nor does it seem to satisfy the executive order https://twitter.com/...
@jonerlichman Jon Erlichman on x
Oracle's biggest acquisitions: PeopleSoft: $10.3 billion NetSuite: $9.3 billion BEA Systems: $8.5 billion Sun Microsystems: $7.4 billion Siebel Systems: $5.8 billion Hyperion Solutions: $3.3 billion Acme Packet: $2.1 billion Taleo: $1.9 billion https://www.bloomberg.com/...
@tiffanycli Tiffany C. Li on x
So is the idea to kill TikTok, as a competitive move? Should we expect DouyinGlobal next year? Because that's the only reason I can think of for selling to Oracle over Microsoft. https://www.washingtonpost.com/ ...
@tomgara Tom Gara on x
Oracle is basically becoming one of those Saudi royal family members who you need to sign up as your “local partner” if you want to open a Toyota dealership there https://twitter.com/...
@karaswisher Kara Swisher on x
Essentially a chance of vendor. Like all things Trump, all hat no cattle. TikTok has chosen Oracle as U.S. ‘technology partner,’ rejecting Microsoft's bid https://www.washingtonpost.com/ ...
@arnold @arnold on x
I guess they didn't want to use SQL Server? https://twitter.com/...
@hawleymo Josh Hawley on x
If true, the #TikTok platform must be rebuilt from top to bottom and all backdoors to #Beijing closed https://twitter.com/...
@sameer_singh17 Sameer Singh on x
If this is just a data privacy partnership (and assuming it can be approved), this is actually a far more sensible path than selling off part of the network to Microsoft. Keeps the network in one piece. https://twitter.com/...
@mattrosoff Matt Rosoff on x
IMO best miss for $MSFT since Yahoo.
@alexstamos Alex Stamos on x
“We would have made significant changes to ensure the service met the highest standards for security, privacy, online safety, and combating disinformation” is an attempt to poison the well against an Oracle deal where they only take over hosting. And MSFT is right to do so. https…
@nytimes @nytimes on x
Breaking News: Microsoft's bid for TikTok was rejected in a U.S.-China security standoff, officials said, leaving Oracle as the sole known remaining bidder. https://www.nytimes.com/...
@harrymccracken Harry McCracken on x
Maybe Oracle can work out some sort of deal involving the President moving to TikTok as his sole social media platform. https://www.nytimes.com/...
@alyssabereznak Alyssa Bereznak on x
congrats to [checks list of extremely uncool companies that want to buy tiktok] oracle https://twitter.com/...
@davmicrot David Rothschild on x
“Last month, Mr. Trump said he would support Oracle buying TikTok. He called Oracle a ‘great company’ and said the firm, which specializes in enterprise software, could successfully run TikTok.” https://www.nytimes.com/...
@taylorlorenz Taylor Lorenz on x
Microsoft is not acquiring TikTok after ByteDance rejected offer, leaving Oracle as the company's sole option. https://www.nytimes.com/...
@karaswisher Kara Swisher on x
Hey @carlquintanilla remember when you were surprised when I said a few weeks ago not to count @Oracle out of the @tiktok_us deal? Don't be. They have less backbone (Bytedance likes), more need (cloud biz) & more Trumpness, despite a much more technically superior @Microsoft.
@sbisson Simon Bisson on x
This is not a bad thing for MS. What with US and Chinese government interests in play it would have quickly become an expensive poisoned chalice. https://twitter.com/...
@wongmjane Jane Manchun Wong on x
RIP Bing Social https://twitter.com/...
@sarahfrier Sarah Frier on x
Microsoft statement makes it sound like ByteDance didn't like the “significant changes” Microsoft wanted to make: https://twitter.com/... https://twitter.com/...
@jolingkent Jo Ling Kent on x
Breaking: Microsoft's bid to buy TikTok US has been rejected by TikTok's parent company ByteDance. “We are confident our proposal would have been good for TikTok's users, while protecting national security interests.” Full statement: https://blogs.microsoft.com/ ...
@shiraovide Shira Ovide on x
I have never been more confused about an M&A deal in my life. Like...what is happening? Nothing? Everything? Neither? https://twitter.com/...
@eringriffith Erin Griffith on x
“We look forward to seeing how the service evolves” Translation: GOOD LUCK!! https://twitter.com/...
@caseynewton Casey Newton on x
Total disagreement on my timeline right now as to whether the value of TikTok is 100 percent in its algorithm, or 100 percent in its user base. Where do you land? (I'm more and more convinced that it's the user base) [POLL]
@caseynewton Casey Newton on x
In related news, I basically cannot imagine a more nightmarish culture fit for TikTok than Larry Ellison's Oracle https://www.axios.com/...
@jasonlk @jasonlk on x
All the Cloud leaders want TikTok Hoping for sort of an “out of left field” joint bid by Twilio, Okta and Datadog https://twitter.com/...
@cameronwilson Cmwlsn on x
“Original deal talks involved all of TikTok's operations, including its underlying algorithm, in the U.S., Canada, Australia and New Zealand.... One source says that ByteDance has now limited talks to TikTok's U.S. assets” https://www.axios.com/...
@danprimack Dan Primack on x
As an aside on the MSFT/ORCL/TikTok... Yes, Walmart has been working w/ Microsoft. But there's no reason to think Walmart wouldn't at least consider working w/ Oracle, were Oracle to win out.
@arjunkharpal Arjun Kharpal on x
So if this is the case, is a US buyer just buying users and their data? And if so, what does that mean for the price tag which has reportedly been floated at $20-30 billion? If Orcale, will it develop own algo? And is this something Trump will accept? https://www.scmp.com/...
@jamestitcomb James Titcomb on x
Wild thing about TikTok sale is that we might end up with -American TikTok owned by Oracle/Microsoft -Rest Of World TikTok owned by ByteDance And those two things will exist simultaneously and both be called TikTok but be on different product trajectories and just not interact?
@annemariebridy Annemarie Bridy on x
Yep. Purchase by Oracle is a near worst case scenario for TikTok. Only slightly better than being immediately driven into the ground. https://twitter.com/...
@tomwarren Tom Warren on x
If Microsoft acquires TikTok it may do so without a key algorithm that really makes TikTok what it is today, suggesting videos to you every refresh https://twitter.com/...
@emresokullu Emre Sokullu on x
What an algorithm it must be! First, show underage kids dancing, then branch out based on swipes; the music, location and regression analysis of the content. https://twitter.com/...
@hadip Hadi Partovi on x
US will shut TikTok down unless it sells. China won't let it sell its algorithm. In the balance of this showdown lies the future viability and predictability of foreign tech investment in US markets. 🤔 https://twitter.com/...
@mdudas Mike Dudas on x
“I'll sell you this car, but without the engine, transmission, battery, alternator, axles, brakes, steering and suspension” https://www.scmp.com/...
@yashar Yashar Ali on x
Then there's truly no point https://twitter.com/...
@sameer_singh17 Sameer Singh on x
Could be a good thing for bidders. Drops the asking price. https://twitter.com/...
@kantrowitz Alex Kantrowitz on x
@CaseyNewton @fmanjoo The whole point of TikTok is getting you videos you'll love without forcing you to curate a follow list. (Cue Twitter's new and casual user quest). That's what differentiates it from the competition and gives it a fighting chance vs. FB Reels.
@fmanjoo Farhad Manjoo on x
@CaseyNewton I don't get the algo argument. (so if you're one of those people, tell me!)
@awbwfyf FYF_RecoveringAtheist_AWBW on x
In other news, China just chose to have their apps banned in the US rather than lose control over the apps in the US. TikTok ban incoming... https://twitter.com/... https://twitter.com/...
@tytus_s Tytus Suski on x
we'll soon find out how much algorithms are worth, then. Offers with algo approx. $30bln https://twitter.com/...
@essexcanning Stephen Canning on x
Pointless. That's like buying Krusty Krab without the recipe for Krabby Patties. https://twitter.com/...
@zacbowden Zac Bowden on x
Microsoft won't buy them if the algorithm isn't included. There's no point. https://twitter.com/...
@alistairmbarr Alistair Barr on x
I'm selling my car. It won't come with the engine, steering wheel or any of the electronics. But you can build them yourself after you buy it. Deal? https://www.bloomberg.com/...
@kantrowitz Alex Kantrowitz on x
“The car can be sold, but not the engine.” Then it's not a car, it's a tin can on wheels. https://www.scmp.com/...
@value_invest12 @value_invest12 on x
Trump cutting off US teenagers and content creators from the rest of the world. Based on...? https://twitter.com/...
@johan_lieber Clyde on x
Well there goes 60% of the value. Tiktok's recommendation algorithm is easily one of the best I've seen. It's not even close. https://twitter.com/...
@hassankhan @hassankhan on x
For decades China REQUIRED technology transfer as a pre-condition to market access and now thinks homegrown technology is sacred. Funny how that works. https://twitter.com/...
@kushdm Kush on x
Makes the takeover completely redundant. TikTok *is* its recommendation algo https://twitter.com/...
@ourielohayon Ouriel Ohayon on x
I will sell you my Mercedes but I keep the engine. https://twitter.com/...
@borrowed_ideas @borrowed_ideas on x
Despite being $FB shareholder, I am sad only for Zhang Yiming. It takes blood, sweat, and tears to build something that can dream to rival world's largest tech companies, only to be shut down by the whims of others. https://twitter.com/...
@carnage4life Dare Obasanjo on x
TikTok only willing to sell its brand & user base in the U.S. and not the algorithms. If no potential buyers want that deal then it'll gladly shut down U.S. operations on Tuesday. The idea that Trump could just seize such a valuable asset now disproven. https://www.scmp.com/...
@danprimack Dan Primack on x
As an aside: It remains unclear exactly what “the algo” is, in reference to what China won't let BD sell. It sounds simple, but it isn't.
@danprimack Dan Primack on x
TikTok: Oracle currently leader in the clubhouse. Particularly if BD won't sell the algo — MSFT could consider it still, but goes against all the priorities it stated. Oracle could still make this work, assuming it can get WH buy-in ("Mr. President. Larry Ellison is on line 2")
@peterpham Peter Pham on x
Wow. The algorithm is what makes @tiktok_us so good https://twitter.com/...
@geopilot @geopilot on x
@Techmeme i dont know enough about tikbtok to know, but what does it do differently? must be something if they wont share it “TikTok's recommendation algorithm”
@nasidi_kura Nasidi Adamu Yahaya on x
Unending story... https://twitter.com/...
@richlightshed Rich Greenfield on x
So you can buy Tik Tok but get NO access to the algorithm So your buying a large customer list?!?!?! Can't imagine Microsoft or Oracle moving forward under these circumstances https://twitter.com/...
@gerberkawasaki Ross Gerber on x
Here you go. You can buy some air. #tiktok looking like a standoff. This is going to get interesting. $msft $orcl https://twitter.com/...
@jedgarren @jedgarren on x
That's because the Chinese government has ruled this app is a protected national security asset. The Chinese government is taking EVERY face,loaded onto Tic-Tok,and storing them,in the biggest facial recognition database,on the planet. This should end any debate about Tic-Tok,IMO…
@lozclaws1 Lozclaws on x
So, like, basically the app itself you mean https://twitter.com/...
@corytrese Cory Trese on x
@Techmeme To be frank, the recommendation algo in TikTok is most likely a borrowed version of an existing recommendation algo and no better than YouTube or Bing. TikTok value is in DAU, not algo. TikTok is commodity software with good market penetration.
@2x … Supercalifragilisticexpialidocious Wears a Mask on x
In that case, I'll offer $10 and a Mike Laga Topps '87. https://twitter.com/...
@kantrowitz Alex Kantrowitz on x
Tik Tok Sale: No algorithm, incomplete leadership, Facebook competition... for billions of dollars. Buyer beware. https://bigtechnology.substack.com/ ... https://twitter.com/...
@taylorlorenz Taylor Lorenz on x
TikTok *is* the For You algorithm. Can't imagine the app sustaining this level of engagement without it. https://twitter.com/...

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Source: Oracle has won the bidding for the US operations of TikTok as a “trusted tech partner”; the deal will likely not be structured as an outright sale

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