Oracle Wins TikTok Bid In U.S., Microsoft Proposal Rejected

TikTok -- Sale Deadline Looming

In a SUNDAY (9/13) announcement, TIKTOK parent BYTEDANCE rejected MICROSOFT's proposal to buy TIKTOK's U.S. division and went with rival ORACLE's bid instead according to the WALL STREET JOURNAL. 

The report goes on to say, "ORACLE is set to be announced as TIKTOK’s “trusted tech partner” in the U.S., and the deal is likely not to be structured as an outright sale. No word yet if that meets the TRUMP ADMINISTRATION's full demands to avoid a shut down of TIKTOK or will be accepted by BEIJING.

You'll recall TIKTOK had been ordered to sell its domestic business to a US company by SEPTEMBER 20th or face shutdown, as the result of President TRUMP's Executive Order (NET NEWS 8/7), banning the wildly popular video app over security concerns.

All of this is deeply embedded in the ongoing trade dispute between the US and CHINA which has reached high levels of tension. According to POLITICO, "CHINA has issued new export restrictions that raise uncomfortable questions about what the AMERICAN company might have to do to satisfy BEIJING. TIKTOK is suing the TRUMP administration over the President's order, which claimed the app could potentially funnel AMERICANS’ personal data back to the CHINESE government.

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

So far, no official comment from either WASHINGTON, BEIJING, or ORACLE. BEIJING last week said it opposed a forced sale of TIKTOK’s U.S. operations by its CHINESE owner BYTEDANCE, and would prefer to see the short video app shut down in the UNITED STATES.

And last week the U.S. government was apparently exploring alternate ways for TIKTOK to operate in AMERICA without selling off its entire business, THE WALL STREET JOURNAL reported last week (9/9).

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