Microsoft officially does not buy TikTok
Microsoft officially withdrew from the ranks of acquiring TikTok. The company issued a brief statement on Sunday confirming that TikTok’s parent company ByteDance has rejected its offer to acquire TikTok’s US business.
At the same time, ByteDance seems to be ready to announce a deal with Oracle, which is the only other well-known American company left in the bidding war.
Microsoft said in the statement:
“We believe that our recommendations are beneficial to TikTok users while protecting national security interests. To this end, we will make major changes to ensure that the service meets the highest standards of security, privacy, online security, and combating false information, and These principles were clarified in the August statement. We look forward to seeing the development of services in these important areas.”
Microsoft did not specify changes to the proposed service. However, before Microsoft’s announcement today, China Morning Post reported this weekend that ByteDance was unwilling to sell its efficient algorithm to US bidders.
To get users hooked on the service, an American buyer must rewrite the basic code essential to the success of the service. According to the report, ByteDance notified US officials and potential purchasers of the decision.
Microsoft’s announcement comes days before the September 15 deadline set by President Trump. Microsoft confirmed in early August that it was considering acquiring TikTok’s US branch.
With Microsoft’s withdrawal, the “New York Times” reported that Oracle is the only known American suitor.
The Wall Street Journal reported tonight that Oracle has been selected as the winner, although as of the writing of this article, Bytedance, Oracle, or US officials have not confirmed this.
The Wall Street Journal added: “Oracle will be declared as TikTok’s “trusted technology partner” in the United States, and the transaction may not be considered a direct sale.”
TikTok plans to move forward with Oracle, although the terms of the transaction and whether it can be considered an acquisition is unclear.
Oracle did not disclose how TikTok may adapt to its existing strategy, or what the service’s plans for its business in the United States are.