TikTok picks Oracle over Microsoft in sales bid
FILE – This Feb. 25, 2020, file photo, shows the icon for TikTok in New York. The video app said it will wage a legal fight against the Trump Administration’s efforts to ban the popular, Chinese-owned service over national-security concerns. TikTok, which is owned by China’s ByteDance, insisted that it not is a national-security threat and that the government is acting without evidence or due process. The company said it will file suit against the government later Monday, Aug. 24 in federal court in California. (AP Photo/File)
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REDWOOD CITY, Calif. (NewsNation Now) — The owner of TikTok has chosen Oracle over Microsoft as its preferred suitor to buy the popular video-sharing app, according to a source familiar with the deal.
Microsoft announced Sunday that its bid to buy TikTok has been rejected, removing a leading suitor for the Chinese-owned app a week before President Donald Trump promised to follow through with a plan to ban it in the U.S.
Microsoft said in a Sunday statement that TikTok’s parent company, Bytedance, “let us know today they would not be selling TikTok’s US operations to Microsoft.”
The Trump administration has threatened to ban TikTok by mid-September and ordered ByteDance to sell its U.S. business, claiming national-security risks due to its Chinese ownership. The government worries about user data being funneled to Chinese authorities. TikTok denies it is a national-security risk and is suing to stop the administration from the threatened ban.
Walmart had planned to partner with Microsoft on the deal. It’s not clear if Walmart is still interested. Oracle has declined to comment.
TikTok also declined comment Sunday.
Microsoft said Sunday it was “confident our proposal would have been good for TikTok’s users, while protecting national security interests.” The company said it “would have made significant changes to ensure the service met the highest standards for security, privacy, online safety, and combating disinformation.”