Media
Chinese Media: Neither Microsoft nor Oracle Closed TikTok Purchase Deal?
Published:
Chinese state-owned media is notorious for releasing factually flawed stories, so it is hard to tell truth from fiction in its reports. The nation’s television broadcaster, CGTN, reported that neither Microsoft Corp. (NASDAQ: MSFT) nor Oracle Corp. (NYSE: ORCL) won the right to “own” social media company TikTok’s U.S. business, currently owned by China’s ByteDance.
The definition of what Oracle may have bought and what Microsoft did not could simply be a joint venture between Oracle and ByteDance to run TikTok partially in the United States. A deal may have brought ByteDance tens of billions of dollars for the arrangement. Rumors are that the transaction primarily allows Oracle to host TikTok on its cloud computing platform. If so, the term “sale” would be out of place. Oracle is well behind a number of other largest U.S. companies as it pushes into the cloud market. A TikTok deal might help increase the size and visibility of that business.
Specifically, CGTN reported, “ByteDance will not sell TikTok’s U.S. operations to Microsoft or Oracle, nor will the company give the source code to any U.S. buyers, sources said.” If the deal with Oracle is a joint venture, reading between the lines could make the statement partially accurate.
The Chinese TV operation added, “CGTN Digital has learned from sources that ByteDance will also not sell TikTok’s U.S. operations to Oracle.”
What do the Chinese have to win by the report? Perhaps an emphasis on the fact that TikTok’s core technology will stay in China and no U.S. company will have access to it. Earlier in the sales process, the Chinese government said some of TikTok’s technology could not be used outside the country without a license, which it apparently was not prepared to give.
Are reports from traditional Western media an accurate description of the Oracle deal, or are CGTN’s? Maybe both are, a little.
24/7 Wall St.Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
