TIKTOK SELECTS ORACLE

ByteDance, the Chinese owner of TikTok, has chosen Oracle to be the app’s partner for its U.S. operations and has rejected an acquisition offer from Microsoft, according to the Tuesday Briefing of The New York Times.

A U.S. committee will review the proposal for the potential tie-up and make a recommendation about it to President Trump this week, Treasury Secretary Steven Mnuchin said on Monday. The companies have until Sept. 20 to reach an agreement that satisfies the Trump administration’s concerns that TikTok poses a national security threat. The arrangement would most likely give Oracle oversight over data on American users.

For ByteDance’s founder, Zhang Yiming, the deal could determine whether his eight-year-old company becomes a global digital colossus or is reduced to a mere power player in China, where the internet market is maturing and competition is becoming more intense. Any resulting deal could still be a geopolitical piñata between the U.S. and China. You can read more about TikTok in our DealBook newsletter.

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