In April, President Joe Biden signed a bill demanding that ByteDance sell TikTok in nine months, or one year if an extension is approved, if the short-video company wants to avoid a ban in the U.S.Oracle CEO Safra Catz, center, departs following a meeting on Capitol Hill in Washington on June 18, 2024. Chief executives from major companies including Palantir Technologies and Oracle Corp.
"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," Oracle said in its annual report for the fiscal year ended May 31.that it was part of ByteDance's proposal to the U.S. Treasury Department to provide cloud services that could help TikTok remain available in the U.S.
TikTok moved forward with an initiative called Project Texas, designed to keep TikTok services for U.S. users running on Oracle cloud infrastructure located inside the country. TikTok"The one thing I can tell you is we have an excellent relationship with the folks at TikTok," Oracle CEO Safra Catz said on a 2022 conference call with analysts.
Following the bipartisan legislation this year targeted at TikTok, and Biden's signing of the bill mandating its sale, TikTok filedOracle hasn't disclosed details of its financial ties to TikTok. Evercore analysts estimated in April that if TikTok is generating sales of $16 billion in the U.S. annually, it could be spending 3% to 5% as a percentage of revenue on cloud infrastructure, which would work out to $480 million to $800 million.