Microsoft surrenders with the purchase of Tik Tok: Oracle could be the chosen one

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If 2020 were a normal year, possibly the news of the purchase of ARM by Nvida could be the most relevant in the technology sector throughout the year. Or the possible Oracle’s acquisition of the US subsidiary of Tik Tok. But this is not a conventional year, no.

A bit of context

In recent months the US administration has been quite belligerent against everything that comes from China and that has not excluded its mobile applications. The most relevant internationally, by far, is Tik Tok, which is a success especially in the United States.

That is why the Government of Donald Trump threatened Byte Dance, the company that developed the application, to prohibit use in the United States unless it sold the subsidiary to an American company.

Microsoft drops its bid

Microsoft surrenders with the purchase of Tik Tok: Oracle could be the chosen one 1

In recent weeks we have heard rumors and news about the possible sale of the company’s subsidiary companies such as Twitter, Microsoft and others.

However, it seems that in the end it will not be the Redmond company that will get the popular social network, as explained in a press release confirming that Byte Dance had rejected its offer.

Oracle would have won the battle

According to the Wall Street Journal, it was the Oracle company that would have won the bid for the US subsidiaries of Tik Tok.

Microsoft surrenders with the purchase of Tik Tok: Oracle could be the chosen one 2

Source: Oracle

But there is a very important detail. China vetoed the export of software systems that could be relevant to the country and that is where the recommendation algorithm used by Tik Tok comes in, which has made the application so successful again.

In other words, Oracle will have to develop its own new algorithm, which can be quite tricky.

In addition, although there is still no official statement from Oracle, there is no talk of a sale, but of a positioning of the US firm as a key technological ally, something that would seek to calm the spirits in the American administration. Taking into account Oracle’s purchase history, this movement is not surprising.

It remains to be seen if that will satisfy Donald Trump and his team, or if on the contrary it will force the sale in a more conventional way to a company in his country. It must also be taken into account that China has already made it clear that it prefers the closure of Tik Tok operations in the United States than the sale of the company’s subsidiary to an American firm.

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