The owner of TikTok has selected Oracle over Microsoft because it’s preferred suitor to buy the popular video-sharing app, according to a source familiar with the deal.
Microsoft declared Sunday its bid to buy TikTok was rejected, eliminating a major suitor for its Chinese-owned program a week before President Donald Trump promises to follow through with a plan to prohibit it in the US.
Microsoft said in a Sunday announcement that TikTok’s parent company, Bytedance, “let us know now they wouldn’t be selling TikTok’s US operations to Microsoft.”
The Trump administration has threatened to prohibit TikTok from mid-September and ordered ByteDance to market its US business, asserting national-security dangers due to its Chinese possession. The government worries regarding user information being funneled to Chinese governments. TikTok denies it’s a national-security risk and will be suing to stop the government from the threatened ban.
Walmart had intended to partner with Microsoft on the offer. It’s not clear if Walmart is still interested. Oracle has declined to comment.
Microsoft said Sunday that it was convinced our proposal could have been great for TikTok “so users, while protecting national security interests. The business said it would have made considerable modifications to guarantee the service met the highest standards for safety, privacy, internet safety, and combating disinformation.”