Oracle entered the race for two reasons: first, because it now has a relationship with TikTok through a partnership with the Texas project, which began in 2020, designed to reassure US officials about their data. On the plus side, Oracle will gain insight into TikTok's data systems and business strategy, said Williamson, who became TikTok's U.S. custodian through the Texas project, that makes it easier to get started and run the company. On the downside, the Texas plan has come under intense scrutiny, and Oracle's involvement could be seen as a liability to us regulators who must approve the deal. Are they confident that U. S. TikTok user data will not be threatened by China? This is an open question. Even Jayme McEwen, a senior research analyst at Enders Analysis, said he did not think the Texas plan was sufficient to explain why oracle should be considered.

“It [ Oracle ] will struggle in key areas, such as ensuring complete separation from bytedance's technology and operations. ” McEwen said. “Then, whether TikTok needs to rebuild the algorithm or be allowed to transfer key technologies from bytedance, you do need a strategic corporate buyer to make a successful transition. Otherwise, TikTok will go it alone -- and there will be questions of trust about whether they really closed all the back doors when they moved their systems to the United States? Either way, it will take years to get back to normal. In 2020, then-president Donald Trump tried to ban the app, citing it as a national security threat. After some back-and-forth, the US government finally reached a compromise: bytedance would have to sell its stake in TikTok's US unit to a US company to prevent an outright ban. At the time, after discussing potential acquirers, the government decided that Oracle and Walmart would jointly buy the business.
In the joint venture (JV) deal, the two companies jointly invested in a 20 per cent stake in the new TikTok Global business, in which Walmart provided advertising, measurement, ecommerce and payments, oracle manages the data. That said, another joint venture with a company like Walmart could be good for Oracle again. Mainly because industry executives do not seem confident that oracle will go it alone. But bytedance is also reportedly exploring the option of selling its U.S. Tiktok Unit, and the parent company would prefer a non-tech company as a new owner.