Oracle, a software company, has expressed concern that a ban on TikTok in the United States could negatively impact its business, according to its annual report. President Joe Biden signed a bill in April requiring China’s ByteDance, TikTok’s parent company, to sell the app within nine months to avoid a ban. Oracle provides cloud infrastructure for TikTok, which has over 150 million users in the US. The issue of TikTok’s Chinese ownership has been a source of tension in the US since 2020, when then-President Donald Trump pushed for the app to sell its US assets. This led to discussions of a potential deal with Microsoft. However, Oracle stepped in with a proposal to the US Treasury Department to provide cloud services for TikTok, allowing it to remain available in the US. This initiative, known as Project Texas, aimed to keep TikTok services running on Oracle’s cloud infrastructure within the country. Oracle would also be responsible for building the app and distributing it to third-party app stores. As a result of these developments, Oracle’s stock price fell by 1.4% to $137.89 on Tuesday.
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