Shares of Oracle jump due to a possible partnership with TikTok U.S.

Shares of Oracle jumped on Monday following reports that the company was chosen by China-based ByteDance to become TikTok’s U.S. technology partner.

Although neither of the companies has officially disclosed the matter, a source familiar with the matter told CNBC on Sunday that ByteDance has selected Oracle to TikTok’s U.S. partner. The source also added that Oracle will have a significant stake in the company.

Earlier on Sunday, tech giant, Microsoft said ByteDance had declined to sell its TikTok’s U.S. assets.

“ByteDance let us know today they would not be selling TikTok’s U.S. operations to Microsoft,” Microsoft wrote in a blog post.

“We are confident our proposal would have been good for TikTok’s users while protecting national security interests. To do this, we would have made significant changes to ensure the service met the highest standards for security, privacy, online safety, and combatting disinformation, and we made these principles clear in our August statement. We look forward to seeing how the service evolves in these important areas.”

Following the unofficial reports, Oracle’s stock saw a 5% surge in early trading on Monday, of which the shares were paused a little while after for pending news.

ByteDance is still yet to reveal its decision, whether or not to begin the deal with Oracle. The White House has already imposed a deadline of September 20 for ByteDance to make a public announcement. If the company fails to do so by the time, it will be banned by September 29, and forced to do a deal by November 12.

With pressures coming from all angles and much anticipation about a possible TikTok U.S. deal, ByteDance and Oracle are yet to disclose anything. TikTok has also declined to comment.

Oracle’s CEO, Safra Catz made it known to analysts during the company’s quarterly earnings call, that the company will be making “no comments regarding the press reports about TikTok.” Adding that, Oracle had previously shown interest in doing a deal together with General Atlantic and Sequoia Capital as both companies each have representations on ByteDance’s board, according to Financial Times.

Whether or not Microsoft or Oracle is a better option for TikTok’s U.S. technology will be determined by ByteDance’s decision.

Oracle, like Microsoft offers cloud infrastructure services which could allow TikTok to continue to operate in the United States. Although, Oracle wasn’t listed among the top five providers of cloud infrastructure services by revenue in 2019, while Microsoft was listed No.2.

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