TikTok to merge with Oracle
Byte Dance a Chinese Company which owns a popular video-sharing app called TikTok in its recent merger deals choose Oracle a US-based firm. Byte Dance was instructed by Trump’s administration to either close its operation in the US or sell the company to a US-based company.
Why the company was forced to sell?
Recently TikTok was trapped in a controversy where India banned its operation and app use in the country. While the US forced the company to either stop its operation in the country or sell it to any US-based firm to continue its operation. Trump administration in its probe found that TikTok has its database in China which is a big threat to the privacy of the US people and federal employees in the US government. TikTok can manipulate the data and can use it in an evil manner. Due to this, Donald Trump gave the Chinese company a deadline of 15 September to either sell its ownership to a US firm or the app will be banned in the US also as it was banned in India.
What is the next step now?
Earlier speculation was high that the Chinese company will merge with Microsoft however, the talks did not go well between both the company and finally Byte Dance choose Oracle to merge with. Now the merger is in the final stage. The Chinese firm has submitted a proposal to the Treasury Department of the US which is awaiting final approval related to security concerns.