Microsoft’s hopes to buy TikTok’s US operations have crashed. ByteDance, TikTok’s owner, has rejected the company’s bid after weeks of talks and threats from US President Donald Trump.
In a statement, Microsoft announced that ByteDance has decided not to sell TikTok, after all. The company said they would have updated the app’s security and privacy policies to protect US national security.
— The Verge (@verge) September 13, 2020
Oracle Steps In
With Microsoft’s failure, Oracle might have found an opening. Oracle had entered talks to buy TikTok in August, and now the company has passed Microsoft for the deal. The two companies have until November 12 to settle any deal. However, China has thrown a roadblock for any deals.
The Chinese government has updated its export control rules to include TikTok. With the new rules, TikTok would need a Chinese license to sell to a US company.
The Future of TikTok
The Verge reports that Oracle might make a deal with TikTok to become its cloud services provider. The US company won’t be the app’s direct owner with full control. However, no one knows what Oracle might do if the deal pushes through.