Oracle Corporation stock surges after confirming a deal with TikTok Parent company
The American multinational computer technology, Oracle Corporation’ stock jumped a whopping 4.3 percent on Monday after they confirmed a deal with ByteDance- TikTok’s parent company.
The short video content creating platform has been on the line of fire in the United States. Trump’s administration cited that the application collected user data and transferred information to their parent company. However, ByteDance refuted such claims. In order to ensue operations in the country, Microsoft first decided to take the plunge and cut a deal.
Nevertheless, TikTok has selected Oracle to handle their part of operations in the country. The corporations’ shares trading was halted on Monday morning until the confirmation was published about the new deal. With this, Oracle will have a huge stake in the business. Also, Microsoft confirmed that ByteDance has taken the decision not to sell their TikTok operations to them. Even though, they reiterated that both the companies working together would have been beneficial and would have sought the protection of national security rights.
Microsoft further explained that if TikTok had ensued amalgamation of services they would have helped combat cybersecurity issues. Such as data privacy, user discretion, online safety, and foremost, blatant disinformation. The proposal was also backed by Walmart significantly stating that the deal will be beneficial for corporate partners as well as users. Microsoft was in talks for acquiring operations not only in the US but also in Canada, New Zealand, and Australia. However, Oracle will now be the trusted service and info tech platform for ByteDance.
But seemingly, Oracle also has close ties with Trump’s administration. Which could possibly mean that they are looking to take similar steps as Microsoft stated.
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