A few weeks after the Trump administration, Oracle confirmed on Monday that it had signed a deal with Byte Dance, the Chinese owner of the popular video sharing app Dictok. A Dictok exemption was ordered In the United States.
The deal still needs US government approval.
“Oracle confirms Secretary Munuch’s statement that Oracle is part of a plan submitted by Bite Dance to the Treasury over the weekend to serve as a trusted technology provider.” Oracle said Monday.
Earlier on CNBC, Munuchin said the US government planned to reconsider the deal this week. “I would say from our standpoint, we need to make sure the code is secure, Americans’ data is secure, and phones are secure.Squawk box. “
Depending on how the deal works, it could boost Oracle’s cloud business. This could make Oracle more visible to young consumers and give them control over a major advertising space.
Microsoft, which competes with Oracle in cloud computing and database software, was also interested in Dictoc’s US operations. But still Microsoft’s bid rejected, And the company announced on Sunday that it was withdrawing from the process. Microsoft Said on August 2nd It was in talks to acquire Dictok in the United States, Walmart was interested in Dictok for its ecommerce capability, and Joining forces One last week with Microsoft Federation with SoftBank Google parent company Alphabet split. On Sunday, Walmart said it still wants to invest in Dictoc.
Dictoc claims to have more than 100 million active users in the United States. Millions of users are in their teens, The New York Times Announced in August. The largest age bracket among Dictoc users in the United Kingdom in December was 18-24, according to industry research. ComScore.
Dictoc stands apart from the rest of Oracle, which sells software to large businesses, schools and government agencies as an app to entertain people. Oracle and Dictoc share interest in marketing. Dictoc earns revenue by displaying users’ ads, and Oracle offers software that marketers can use to manage the distribution of ads on Facebook and other channels. There is Dictok Quickly add users, When Oracle’s revenue has declined In the most recent eight quarters.
Serving as a technology provider for Dictoc means that Oracle will provide its cloud infrastructure to use the app. This will give Oracle another popular asset that its executives can boast of being a cloud client, and it could attract additional cloud business. In an Oracle revenue conference call with analysts last week, Chairman Larry Ellison released several notes on the use of the video calling service Zoom Oracle Public Cloud. Oracle was Not among the top five cloud infrastructure providers According to Gartner, a technology research firm, by 2019 revenue.
Acquisitions have helped Oracle expand its portfolio. The 2010 Sun deal made Oracle a significant vendor of servers for data centers, and it entered the market for point-of-sale retail devices with its 2014 acquisition of Microsoft. Oracle’s $ 9.1 billion acquisition of cloud software company Netsut in 2016 is the largest transaction in its 43 – year history.
Oracle maintains relations with the US government. CEO Safra Gates was part of Trump’s Alternative Committee, and Ellison hosted a fundraising event for Trump’s election campaign at one of his California homes earlier this year. It also has ties to the Democrats: Leon Panetta, a former CIA director and Secretary of Defense under President Barack Obama, is on the Oracle group.
Bite Dance was founded in 2012, and that year it launched a news app called Tutio. After bringing a similar app for people called Duin in China, it was released in 2017 by Dictoc for those outside of China. Also acquired a separate video sharing app in 2017 called Bite Dance Musical.lie, which received the following in the United States last year in the United States Foreign Investment Related Group Bite contacted Dance About the Musical.ly deal due to concerns about the Chinese government’s ability to access user data.
Byte Dance said it would abide by the Chinese government Updated restrictions on exports, Now touch on “Recommendation of personalized information services based on data analysis”. Dictoc relies on referral systems to determine which videos should be shown to users.
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