Amid reports Monday morning that Oracle has won the battle with Microsoft to acquire TikTok’s US operations, China’s state-owned English TV channel claims that no sales with any US buyers will proceed (via Reuters).
ByteDance will not sell TikTok’s US business to Oracle Corp. ORCL.N or Microsoft Corp. MSFT.O and will not provide the source code for the video platform to any US buyers, China’s state-owned English television channel CGTN reported on Monday, citing sources.
People familiar with the matter told Reuters that ByteDance left the sale of TikTok in the US and decided to pursue a partnership with Oracle in hopes of avoiding a US ban while appealing to the Chinese government.
ByteDance declined to comment on CGTN’s report.
A source also told South China Morning Post that the technical startup has decided not to sell or transfer the source code behind the popular video app.
The development follows a report from Wall Street Journal On Sunday night, database software and cloud system giant Oracle claimed to have terminated the deal immediately after Microsoft announced it had been rejected. The agreement allegedly stopped short of a direct acquisition of all assets and intangible property, and TikTok rated Oracle as a “reliable technology partner” instead.
In a post-news blog post, Microsoft wrote:
“ByteDance informed us today that they will not sell TikTok’s US business to Microsoft. We are confident that our proposal would have been good for TikTok’s users while protecting national security interests. To do so, we would have made significant changes. “to ensure that the service is met. the highest standards of security, privacy, online security and the fight against misinformation, and we made these principles clear in the August statement. We look forward to seeing how the service develops in these key areas.”
Microsoft was originally considered a frontrunner in acquisition talks with TikTok’s China-based parent company ByteDance, and made a formal proposal that would have involved the acquisition of TikTok’s operations in the United States, Canada, Australia and New Zealand.
Bloomberg On Monday, sources cited claims that the concepts discussed between ByteDance and Oracle “still evolve”, but that one of the options explored could see Oracle take a stake in a newly formed US company while serving as TikTok’s US technology partner and house video app data in Oracle’s cloud servers.
Offers from both parties reportedly valued the US business at around $ 25 billion, but it is said to be before Chinese officials weighed in with new rules that set limits on technology exports.
Any agreement must continue to be reviewed by the Committee on Foreign Investment in the United States (CFIUS), a US government group chaired by the Secretary of the Treasury that studies mergers of companies for national security reasons.
President Donald Trump issued an executive order in mid-August demanding that ByteDance sell its US operations within 90 days. Trump demanded that ByteDance announce its plan to sell TikTok in the United States by September 20 and complete a deal by November 12. The US government will ban the Chinese video app by September 29 for national security reasons if it does not deliver the plan. TikTok successfully sued the order ban at the end of August.
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