Oracle, a software company, has expressed concerns that a ban on TikTok in the United States could negatively impact its business. President Joe Biden signed a bill in April requiring China’s ByteDance, the owner of TikTok, to sell the popular app within nine months to avoid a ban. Oracle provides cloud infrastructure for TikTok, which has over 150 million users in the US. The tension surrounding TikTok’s Chinese ownership dates back to 2020 when former President Donald Trump pushed for a sale or divestment of US assets. This led to talks of a potential deal with Microsoft. However, Oracle announced its involvement in ByteDance’s proposal to the US Treasury Department to provide cloud services, ultimately leading to Project Texas – an initiative aimed at keeping TikTok services running in the US on Oracle’s cloud infrastructure. Additionally, Oracle would be responsible for building the app and distributing it to third-party app stores. As a result of these developments, Oracle’s shares experienced a 1.4% decrease, dropping to $137.89 on Tuesday.
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