Opinion Will Oracle Solve the Short TikTok Problem?


Sometimes when I feel particularly gorgeous, I think Oracle is similar to Oracle Child Rock technology: Among the least captivating digital celebrities in Silicon Valley, this 43-year-old business software giant seems to always want to show up at the White House and enthusiastically do whatever the Trump administration wants.

Join the Transitional Committees and the Business Roundtable, even as other technology executives hold their noses or run away in horror over President Trump’s immigration bans? Of course! Raising funds for the re-election of the president for a witty California excavation Larry Ellison? But of course! Create a database to monitor Covid-19 treatment, even if it is controversial and potentially dangerous information on hydroxychloroquine pushed by Mr. D. Trump, need to load it? Sign up!

Trumping an Oracle bear can be a routine for the Trump administration – and vice versa – and maybe so. Or you may be inclined to the pillars of Oracle for sincerely sucking an administration that has more than a real grab.

However, we can all agree that Oracle’s efforts seem to have paid off if the company can finally grab a seat at the cool children’s table, being able to become the owner of the hottest tech startup, TikTok.

It’s still great if. The deal was supposed to be a direct acquisition of an American company, as Mr Trump ordered this summer because he was worried about the security risks of the Chinese company, which owns the digital platform, and all the personal data associated with it. is infinitely popular among young Americans.

Microsoft has shown interest in buying the company. It ended and Oracle appeared as a TikTok US partner last weekend.

The deal will have to be approved by Mr Trump, who was due to say nice words about Mr Ellison on Tuesday. It needs to be reviewed by national security experts and a powerful U.S. interdepartmental committee on foreign investment that assesses national security risks in transactions with foreign entities.

From what we know so far, and everything can change, ByteDance seems to be remains actual owner the miraculous recommendation algorithm used by TikTok, whose disaster in all popularity at the political moment must belong to a Chinese-based company, when being a Chinese company with 100 million American consumers is not ideal.

This sparked a battle over TikTok, which ended with Trump’s executive order that it be sold or banned in the US this week until China is likely to have downloaded all the dancing teenagers (Mr Trump, of course, provided no evidence). that Beijing is pumping consumer data).

This is a much more complex story, of course, part of the global struggle against China for hegemony in the next technological age. And indeed, there are legitimate concerns about giving the Chinese company access to the data, as well as about the possible back door and the more subtle power that Beijing could gain to deliver propaganda to Americans through the entertainment program.

There is no doubt that issues of Chinese influence and surveillance should be central to the thoughts of any democratic government – and a clear and far-reaching policy on how to deal with Beijing is needed.

But that’s not it. What’s left for us after all the cutting and tearing of orange hair is a lot of sound and rage that seems to mean very little.

The terms of Oracle’s transaction remain unclear. There’s some sort of TikTok dedicated to the United States with the American board and most American investors, but it’s still worrying who exactly owns and manages TikTok’s critical code.

Several technology leaders told me that this semi-resolved solution was due to the fact that, as usual, our president, after shedding hair, made TikTok declarations. this summer. Eventually, he began sinking into Trump’s administration that forcing Americans to acquire and abandon a complex global company is not as easy as shouting about the “Chinese threat.”

On the one hand, many ByteDance investors are very powerful venture capitalists based in the United States, and none of them wanted to be forced to sell their shares through a discounted fire sale organized by D. Trump (and a few are major Republican supporters).

Microsoft, the early leader in the deal, proved to be superior to Oracle, which came as a big surprise to many analysts. Together with Amazon and Google, Microsoft is a major player in the cloud services business, and Oracle lags far behind in both business size and talent. While Oracle recently won as a cloud service provider for the pandemicly popular Zoom, Microsoft was seen as the obvious choice to take over TikTok for those who understand the technological challenge to eliminate Chinese influence.

Microsoft appears to have accepted D. Trump that he wants to sell, and many sources said its offer was a complete takeover of TikTok’s U.S. business. “Microsoft wanted full control,” said one insider.

This became problematic after China decided to block the transfer of the TikTok recommendation algorithm outside the country. It was a boss’s move, roughly similar to allowing someone to sell a car, but without its engine.

With that confrontation, it was necessary to move quickly to a new plan that could satisfy everyone. So under the new deal, Treasury Secretary Steven Mnuchin said Oracle would be a “trusted technology partner.” I’m not sure what that means – and no one else. (Apple’s Genius Bar is my trusted technology partner.)

Is it just Oracle’s requirement to oversee American operations and get inventory? Or would it be a worldwide deployment of Oracle and huge control over the service? Or would Oracle be just a dressed-up cloud service provider, an overpaid babysitter, a mime center serving police rentals?

Mr. Mnuchin also sounded several loudly politically motivated bells and whistles – as promises of American work and a new U.S. headquarters. But those things were already happening before this “hubbub” began. There was talk of a possible spin-off of TikTok and a US public offering that could have led to the same result if Trump did not intervene (there may still be an IPO in the future).

Another key question many people in the technology industry ask is: is this a very sophisticated way to reward a corporate ally of the Trump administration?

Some Washington politicians who supported Chinese aggression also have their own questions about the Oracle agreement.

“Any corporate shell game that leaves TikTok in the hands of ByteDance will simply perpetuate the original problem, posing a serious threat to U.S. national interests and everyday consumers,” the letter said. Mnuchin was written by Senator Josh Hawley, a Republican of Missouri. for rejection of the transaction.

This is a sign that Oracle is likely to speculate that this is only the face-saving side of the measure and that without the White House’s favor it will not receive such sweet deals.

So until it’s clear how the government will do all this, Oracle’s role in TikTok will be as inexplicable as the lyrics to Kid Rock’s songs. the biggest hit: “Bawitdaba da bang da bang diggy diggy diggy”.

You understand that.

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