“ByteDance announced today that TikTok’s US operations will not be sold to Microsoft,” the company said. Various reports indicate that Oracle received the winning bid.
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This story originally appeared on PCMag
With the deadline ahead, Microsoft’s efforts to acquire TikTok appear to be on hold while Oracle may have closed the deal.
“ByteDance told us today that they would not sell TikTok’s US operations to Microsoft,” the company said in a statement on Sunday evening.
Various Reports Indicate that Oracle received the winning bid but the company has not yet confirmed the message.
“We are confident that our proposal would have been good for TikTok users while protecting national security interests,” added Microsoft. “To achieve this, we would have made significant changes to ensure that the service met the highest standards of security, privacy, online safety and the fight against disinformation, and we clarified these principles in our August statement. We are pleased look forward to seeing how the service evolves in these important areas. “
These principles included ensuring that US TikTok user data is transferred to the US and remains there. “The operating model for the service is intended to ensure transparency for the users and adequate security monitoring by the governments in these countries,” Microsoft said a few weeks ago.
The message comes after Wall Street Journal reported that Beijing-based ByteDance who owns TikTok has refused to sell or transfer its algorithm to potential buyers.
ByteDance wants to sell the popular video sharing app as President Trump promised to ban TikTok in the US if it remains under Chinese control. Trump gave potential US buyers the chance to work out a TikTok deal through September 15 before a ban goes into effect. Oracle was also controversial.
Interestingly, Trump said last month that the US government should get a share of the sale if a US company were to acquire TikTok. “I said that a very substantial part of this award has to go to the US Treasury. Because we make it possible for this agreement to come about, “said Trump.” Right now they have no rights unless we give them to them. “
Trump has not yet responded to messages from Microsoft.
The concern is that China is using apps like TikTok, as well as China-based companies like Huawei and ZTE, to spy on its international users. The United States has not yet provided evidence of this, but they argue that if China were to require access to user data from companies in the country, those companies would have no choice but to comply.
TikTok then sued the Trump administration. In August, Vanessa Pappas, general manager of TikTok in the US, said in a video message: “We are not planning to go anywhere.”