Oracle confirmed it has struck a deal with TikTok-owner ByteDance, weeks after the Trump Administration ordered a TikTok divestiture in the U.S. The proposal for an agreement still needs to be approved by the US government.
Treasury Secretary Steven Mnuchin told CNBC on Monday morning that the U.S. government plans to review the deal this week. Depending on how the deal works out, it might make Oracle more visible to young consumers and give it control over a prominent advertising venue. And it could boost Oracle’s cloud business.
Microsoft, which competes with Oracle in cloud computing and database software, was also interested in the social-media asset.
But Microsoft’s bid was rejected, and the company announced it had withdrawn from the process on Sept. 13
TikTok said it has over 100 million active monthly users in the U.S. Millions of users are teenagers, the New York Times reported in August.. According to industry research firm Comscore, the largest age bracket among TikTok users in the United Kingdom in December was 18-24.