TikTok's Proprietary Algorithm Technology Maintained by ByteDance
User Data Management by Oracle
Includes Creation of 20,000 Jobs in the U.S.
[Asia Economy Reporter Kwon Jae-hee] Chinese IT company ByteDance has chosen American IT company Oracle as its technology partnership partner and reportedly proposed to the U.S. administration a plan to establish TikTok's headquarters in the United States. As U.S. President Donald Trump, who is engaged in an all-out confrontation with China, strongly pressured the removal of TikTok, ByteDance plans to establish a global business division corporation in the U.S. to minimize ties with China. President Trump expressed optimism about the prospect, saying he is "very close to an agreement" regarding this matter.
According to the Wall Street Journal (WSJ) on the 15th (local time), ByteDance recently submitted a proposal for a technology partnership with Oracle containing these details to the U.S. Treasury Department. According to the plan, ByteDance would establish a separate corporation in the U.S. to handle TikTok's global business division, maintaining a major shareholder status, while Oracle would acquire a partial stake as a technology partner. Oracle would hold a minority stake not only in TikTok's U.S. business but also in the app's entire global business division. The plan also includes transferring supervisory authority over TikTok's future operations to the Committee on Foreign Investment in the United States (CFIUS) under the U.S. Treasury Department. The newly launched TikTok global business division would be a separate corporation with independent supervisory authority, and ByteDance would not be involved in its operations. ByteDance also stated that relocating TikTok's headquarters to the U.S. would create more than 20,000 jobs. The core TikTok algorithm, which the Chinese government had opposed handing over to the U.S., would remain with ByteDance, while user data would be entirely managed by Oracle. They also proposed that U.S. user information be managed and stored within the United States.
President Trump expressed a positive stance on this plan. Meeting with reporters at the White House that day, he said, "I heard we are very close to an agreement," and added, "We will soon decide whether to approve the technology partnership plan proposed by ByteDance with Oracle." His remarks came after reviewing the matter with senior U.S. government officials, including Treasury Secretary Steven Mnuchin and Commerce Secretary Wilbur Ross, and meeting with ByteDance representatives, lending more weight to the possibility of approval. This was interpreted as the final procedure before the TikTok acquisition negotiation deadline on the 20th. CNBC, citing a source familiar with the matter, reported that "the Trump administration may approve this plan as early as this afternoon."
President Trump appears particularly inclined toward Oracle's acquisition. He revealed that he is a fan of Oracle Chairman Larry Ellison, adding, "He has been a great person for a long time and I respect him very much."
U.S. media are also paying attention to the friendship between President Trump and Chairman Ellison. Ellison hosted a fundraising event for President Trump at his California mansion in February this year. In April, he also joined the White House advisory panel for economic recovery. WSJ reported that Ellison's and President Trump's friendship seemed to have influenced Oracle being selected as the preferred bidder in the TikTok sale negotiations, surpassing Microsoft.
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