TikTok rejects Microsoft deal, chooses Oracle instead

TikTok has allegedly chosen software maker Oracle as its “technology partner”, putting an end to Microsoft’s bid for the social media giant.

Microsoft on Sunday posted an update to its website saying it had not been chosen by TikTok’s parent ByteDance.

READ MORE: Trump says he will not extend TikTok sell-by date

“ByteDance let us know today they would not be selling TikTok’s US operations to Microsoft. We are confident our proposal would have been good for TikTok’s users, while protecting national security interests,” Microsoft said.

“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,” Microsoft added.

According to anonymous sources speaking to The Washington Post, TikTok has instead chosen Oracle.

TikTok has allegedly put forward a proposal to the US government which would allow ByteDance to retain ownership but outsource cloud management of the data.

Another possible aspect of the proposal cited by sources speaking to The Washington Post is that ByteDance will move its headquarters outside of China to alleviate concerns that the parent company would be subject to Chinese laws that require firms, if directed, to share data in their systems with the government.

It’s also possible that Oracle will need to take a stake in the company to pass demands from the US government.

President Trump previously issued an order that would ban the app in the US.

Trump followed that with a second order that would essentially require ByteDance to divest from its operations in the US.

It is still not known if Trump or The Committee on Foreign Investment in the United States will sign-off on TikTok’s Oracle proposal.

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