Microsoft announced that its bid to take over TikTok’s North American operations was not successful and was considered the preferred bidder for TikTok’s North American operations. The agreement with Oracle, which would not be structured as an outright sale, would be subject to approval by the White House.
Microsoft, which was officially a candidate to acquire TikTok’s North American and Australian businesses with its partner Walmart, announced that its offer had been rejected by ByteDance. “ByteDance told us today that it would not sell TikTok’s US operations to Microsoft,” the US giant said in a statement. “We are convinced that our proposal would have been good for TikTok users, while protecting national security interests. “Microsoft assures that it would have made “significant changes” to TikTok to ensure security, privacy, online safety and the fight against misinformation.
TikTok, and its Chinese parent company Bytedance, have been under scrutiny by the U.S. authorities for several months. Citing national security concerns, President Donald Trump issued an executive order on August 6 prohibiting transactions with ByteDance or its subsidiaries. The executive order is expected to take effect 45 days after its publication, unless TikTok finds a U.S. buyer for its U.S. operations. Subsequently, the President doubled this time frame.
Larry Ellison (Oracle) is a supporter of Donald Trump
To motivate this offensive, the Trump administration and other elected officials expressed concern that data collected on U.S. citizens would fall into the hands of the Chinese government. The U.S. Army and Navy have banned the military from downloading the application to government-supplied phones. Earlier this month, the U.S. House of Representatives voted to ban the use of TikTok on all government phones. TikTok repeatedly stated that these fears were unfounded.
Oracle’s interest in TikTok came a few weeks after Donald Trump’s initial order. “I think Oracle is a great company,” said the U.S. president, calling Oracle co-founder Larry Ellison “a great guy.
Ellison is one of President Trump’s best-known supporters in the tech industry. In February, he organized a fundraiser for the president that resulted in a walkout of some Oracle employees in protest.
Image : TikTok