Oracle CEO Safra Catz, center, departs after a meeting on Capitol Hill in Washington on June 18, 2024. CEOs of major companies including Palantir Technologies and Oracle Corp. invade Gaza, while also seeking to free hostages held by Hamas.
Graeme Sloan | Bloomberg | beautiful images
US TikTok ban could be damaging ProphecyThe software company’s business operations have admitted in annual report in Monday.
In April, President Joe Biden signed a bill requires China’s ByteDance to sell TikTok in nine months, or a year if an extension is approved, if the short video company wants to avoid a ban in the US. TikTok’s ownership structure has long been a source of tension in the US due to concerns about user data making its way to China.
Oracle provides cloud infrastructure for TikTok, passed 150 million users United States
“If we are unable to provide those services to TikTok and if we are unable to redeploy that capacity in a timely manner, the Our revenues and profits will be adversely affected.”
Concerns about TikTok and its Chinese ownership began in 2020, when Donald Trump, then president, pushed for the sale or divestment of U.S. assets. That pressure motivated me negotiated agreement with Microsoft. A few weeks later, Oracle announced that it was part of ByteDance’s proposal to the US Treasury to provide cloud services that could help TikTok remain available in the US
TikTok has continued to work on an initiative called Project Texas, designed to keep TikTok services for US users running on Oracle cloud infrastructure located in the country. TikTok speak Oracle will also be responsible for authoring the application and distributing it to third-party app stores.
“One thing I can tell you is we have a great relationship with the people at TikTok,” Oracle CEO Safra Catz said during a 2022 conference call with analysts.
Following this year’s bipartisan legislation targeting TikTok and Biden’s signing of a bill mandating its sale, TikTok filed a lawsuit argued that the law violates First Amendment free speech protections.
Real estate investor Frank McCourt and former Treasury Secretary Steven Mnuchin have expressed interest bought TikTok but no deal materialized.
Oracle has not disclosed details about its financial relationship with TikTok. Evercore analysts estimated in April that if TikTok generates $16 billion in annual revenue in the US, the company could spend 3% to 5% percent of revenue on cloud infrastructure, This number could be up to 480 million to 800 million USD. by Oracle cloud infrastructure revenue in the fiscal year amounted to 6.9 billion USD.
TikTok did not immediately respond to a request for comment.
CLOCK: Carnegie’s Peter Harrell said investors want to see a sale of TikTok
