Oracle Corp. said it will take a 12.5% stake in TikTok Global and become the newly formed company’s cloud computing provider, culminating weeks of negotiations over a popular video-sharing app that became the focus. of the tension between the United States and China.
Oracle is working with Walmart Inc. and other investors, including Sequoia Capital, who together will end up with a 20% stake in TikTok Global, people familiar with the matter said. TikTok’s parent ByteDance Ltd. will take the rest.
TikTok’s decision to choose Oracle was influenced by another company, Zoom Video Communications Inc., which recently moved some of its video conferencing capacity to Oracle’s cloud business, Redwood City, California-based Oracle said in a statement. .
ByteDance sought investors in TikTok’s operations in the US after Trump proclaimed that TikTok was a threat to US national security and ordered that the application be sold to an American company or closed before 20 September. The president said early Saturday that he gave his “blessing” to the “concept” of the deal, although ByteDance will retain such a large stake.
“TikTok chose Oracle’s new Generation 2 cloud infrastructure because it is much faster, more reliable and more secure than the first generation technology currently offered by all other major cloud providers,” said CEO Larry Ellison in a release.
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