TikTok Rejects Microsoft Takeover Bid, And Now Oracle May Not Buy It Outright

Microsoft will not acquire TikTok's US operations. The Xbox company announced on Sunday evening that TikTok owner ByteDance has rejected Microsoft's offer.

Microsoft said it believes its proposal was a good one, but the two companies ultimately could not come to terms. The Wall Street Journal reported that Oracle has emerged victorious in the discussions, though it's not an outright sale. Instead, Oracle will become TikTok's "trusted tech partner" in the US.

In a brief statement released on Monday, Oracle said, "Oracle confirms Secretary Mnuchin's statement that it is part of the proposal submitted by ByteDance to the Treasury Department over the weekend in which Oracle will serve as the trusted technology provider. Oracle has a 40-year track record providing secure, highly performant technology solutions."

It's unclear what the nature of the relationship with Oracle and TikTok would be in this proposed deal.

Microsoft's statement follows below.

"ByteDance let us know today they would not be selling TikTok’s US operations to Microsoft," the company said. "We are confident our proposal would have been good for TikTok’s users, while protecting national security interests.

"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," Microsoft added. "We look forward to seeing how the service evolves in these important areas."

In other news regarding the potential sale of TikTok, it was reported by the South China Morning Post that ByteDance will not sell or transfer its "for you" algorithm, which is the driving force behind the app. "The car can be sold, but not the engine," a source said.

US President Donald Trump has said he may ban TikTok in the US unless its US operations are sold by September 15. ByteDance has filed a lawsuit against this action.

Microsoft shut down streaming site Mixer last month as it continues to focus on its enterprise-related businesses. It was never clear how a TikTok acquisition might have factored into the Xbox business as the Xbox Series X's release approaches, but that's all out the window now.