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

Microsoft says it made a good offer, but the two companies could not come to terms; Oracle emerges as the winner.

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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.

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BDRTFM

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Edited By BDRTFM

Anyone in government who has a problem with TikTok would probably rather have seen Microsoft buy the US division. I don't think Oracle becoming a "Partner" is going to sway these people when ByteDance is still basically telling the government to shove it and that they will remain fundamentally the same even with Oracle as a partner.

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subsided94

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Dumb purchase of something that will fade away as a new video trend comes around

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chaosbrigade

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@subsided94: That's what they thought about Instagram, Snapchat and Twitter.

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Sound_Demon

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@chaosbrigade: Snapchat is pretty dead now, Twitter isn't a video sharing platform. Vine is the point of reference.

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SystemOverload

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Edited By SystemOverload  Online

Probably for the best because Mixer didn’t pan out.

TikTok has a much greater potential to be lucrative but the initial cost and attention would take away from current profitable products.

I don’t how Oracle is going to incorporate TikTok into their company. Maybe Oracle are just being jerks because of the Netscape Navigator vs Internet Explorer Incident because Oracle is probably not going to be coming out as a winner in the long run.

Buy then quickly sell to any company but Microsoft? Maybe Sony will buying from Oracle? Sony loves wasting money....

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Archangel2222

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Americans will not use tiktok unless they have an american company running things there. meanwhile the rest of the world are going through china. you just cant stop them, the world cant stop them they rely on china too much its the norm. Next 500 years theyll be on top running the world, every empire comes to an end eventually and a new rises and it repeats all over again

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Abdulrahman1981

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TikTok are hoping Trump doesn’t win next election so they can continue their operations in the US after 3 months Ban :)

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GirlUSoCrazy

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MS probably isn't the best to handle a social media property but Oracle??

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Jinzo_111887

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So is the ban still going through because the algorithm still in Bytedance's hands or did Oracle save the app by buying it?

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Blev08

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@Jinzo_111887: I was under the impression that ByteDance had to sell their operations to prevent a ban, not get a "trusted tech partner". This also has me wondering if this is enough to sidestep a ban.

Frankly, considering how much intellectual property US companies have been forced to turn over to China, they should absolutely require ByteDance to turn over the algorithm.

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idakooz

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@Jinzo_111887: Trump ain't doing squat. TikTok will not be banned in the US.

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