Subj : Oracle says US TikTok ban could hurt its business
To   : All
From : TechnologyDaily
Date : Tue Jun 25 2024 17:00:06

Oracle says US TikTok ban could hurt its business

Date:
Tue, 25 Jun 2024 15:58:18 +0000

Description:
US TikTok ban could impact more than just TikTok, it could also hit Oracle 
hard

FULL STORY
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Cloud giant Oracle has claimed a potential ban on TikTok in the US could 
significantly impact its business financially. 

In its latest annual report , released for the 12 months ending May 31 to the 
SEC, the company stated, if we are unable to provide those services to 
TikTok, and if we cannot redeploy that capacity in a timely manner, our 
revenues and profits would be adversely impacted. 

Oracles concern stems from President Bidens recent legislation, which 
requires TikToks Chinese parent company, ByteDance, to divest its US 
operations within nine months to avoid a total US ban. Oracle worried about 
TikTok US ban 

Oracle, which provides cloud infrastructure services for TikToks US 
operations , commented on the legislations impacts: Compliance with these 
laws may increase our expenses as we engage specialized or other additional 
resources to assist us with our compliance efforts. 

The controversy surrounding TikToks Chinese ownership and potential data 
privacy concerns isnt new. In 2020, former President Donald Trump demanded 
that ByteDance sell its US assets. 

TikTok later confirmed that it had chosen Oracle as its secure cloud provider 
in late 2020, however its unclear how much of Oracles revenue is attributable 
to the social media platform. Oracle recently posted a 6% year-on-year 
increase to its fiscal year revenues, marking steady growth in a sector thats 
worth around $300 billion. 

Evercore analysts estimate that TikToks annual US sales of $16 billion could 
translate to $480 million to $800 million in cloud infrastructure spend, 
representing a substantial portion of Oracles income. 

The social media platform also announced Project Texas as a way to address US 
scrutiny, highlighting its commitment to transparency and confirming that 
user data is managed on Oracles domestic cloud infrastructure. 

 TechRadar Pro offered Oracle an opportunity to share further thoughts and 
context, but the company did not immediately respond. More from TechRadar Pro 
These are the best cloud hosting providers Check out our list of the best 
social media management tools Oracle confirms Microsoft is using its cloud 
infrastructure to support OpenAI



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Link to news story:
https://www.techradar.com/pro/oracle-says-us-tiktok-ban-could-hurt-its-busines
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