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TikTok snubs Microsoft deal amid growing interest from Oracle

Admire Moyo
By Admire Moyo, ITWeb's news editor.
Johannesburg, 14 Sept 2020

TikTok parent ByteDance will not be selling the video-sharing app’s US operations to software giant Microsoft.

This after US president Donald Trump signed an executive order on 6 August, blocking all transactions with ByteDance in an effort to address “national emergency” issues.

On 14 August, the US president issued an order that gave ByteDance 90 days to divest the US operations of TikTok.

Since then, US companies such as Microsoft and Oracle have been lining up as potential buyers for the popular short video app.

Yesterday, Microsoft issued a statement saying ByteDance let the software company know it would not be selling TikTok’s US operations to Microsoft.

Trump had given Microsoft until 15 September to buy TikTok.

“We are confident our proposal would have been good for TikTok’s users, while protecting national security interests,” says Microsoft.

“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.”

Meanwhile, Reuters reports that ByteDance abandoned the sale of TikTok in the US on Sunday to pursue a partnership with Oracle that it hopes will spare it a US ban while appeasing China's government.

Citing people familiar with the matter, the report says under the proposal, Oracle will be ByteDance’s technology partner and assume management of TikTok’s US user data.

It adds that Oracle is also negotiating taking a stake in TikTok’s US operations.

As the trade war between the US and China rages on, the US government has accelerated its efforts to purge Chinese apps and technology companies that it deems untrustworthy.

Last month, TikTok filed court papers against Trump’s executive order that looks to block it in the country.

TikTok said the executive order issued by the administration has the potential to strip the rights of its community without any evidence to justify such an extreme action, and without any due process.

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