Thu. Sep 24th, 2020

TikTok Sale: ByteDance Rejects Microsoft Bid

PARIS, FRANCE - MARCH 05: In this photo illustration, the social media application logo, Tik Tok is displayed on the screen of an iPhone on March 05, 2019 in Paris, France. The social network broke the rules for the protection of children's online privacy (COPPA) and was fined $ 5.7 million. The fact TikTok criticized is quite serious in the United States, the platform, which currently has more than 500 million users worldwide, collected data that should not have asked minors. TikTok, also known as Douyin in China, is a media app for creating and sharing short videos. Owned by ByteDance, Tik Tok is a leading video platform in Asia, United States, and other parts of the world. In 2018, the application gained popularity and became the most downloaded app in the U.S. in October 2018. (Photo by Chesnot/Getty Images)

ByteDance has selected Oracle as its partner for a deal to keep TikTok operating in the U.S.

The decision comes as ByteDance has rejected a bid by Microsoft that earlier this summer was seen as the likely option for the company as it looked to avoid a shutdown of the popular social media app amid increased tensions between the U.S. and China. Microsoft confirmed that its bid had been rejected in a statement on its corporate blog on Sunday night. “We are confident our proposal would have been good for TikTok’s users, while protecting national security interests,” the company wrote. “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 was seen as the favorite to move forward in negotiations with ByteDance given its deep pockets, which would have helped it address the security concerns that led President Donald Trump to require the business to be sold if it wanted to continue to operate in the U.S. Walmart had planned to team up with Microsoft on the bid but was not mentioned in the company’s statement.

But ByteDance, facing a short timeline to strike a deal, ultimately felt that Oracle — which has curried favor with Trump — was the best partner to address the security concerns that have plagued the app since it first came to the U.S. in 2018. According to the source, Oracle is being brought on board as a tech partner and not as an outright buyer of TikTok’s U.S. business. It’s unclear whether Oracle will acquire a share in TikTok as a result of the partnership.

Representatives for TikTok and ByteDance declined to comment. A spokesperson for Oracle did not respond to a request for comment.

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Written By: Tommy Lightfoot Garrett

Photographs are Courtesy: AP

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