As we are in the mid of September, Chinese tech giant ByteDance tumbles towards the deadline imposed by US President Donald Trump‘s ban on TikTok. At the final hours, it seems that ByteDance has handpicked Oracle over Microsoft for selling off its US operations business. This report comes directly from none other than Bloomberg itself.
Another report suggests that a deal between ByteDance and Oracle will look more like a corporate restructuring than an outright sale. People familiar with this matter has conveyed that Oracle may take a stake in a newly formed US business and serve as TikTok’s technology partner. In simple words, this means, TikTok’s US data will be stored in Oracle’s cloud servers.
It must be noted that even with this Oracle deal, ByteDance might not be out of the hot water because the Trump administration wanted ByteDance to sell off its US assets completely, while on the other hand, this deal is more like a corporate restructuring. It remains to be seen whether the White House approves the deal right away or comes with some added conditions.
Interestingly, now, US tech giant Microsoft has confirmed that it is no more talking with ByteDance. In the past few weeks, the Redmond giant and Walmart had come together to buy TikTok’s US operations.
In a press release, Microsoft stated “ByteDance let us know today they would not be selling TikTok’s US operations to Microsoft. 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. We look forward to seeing how the service evolves in these important areas.”
In a press program conducted by Bloomberg, a Walmart spokesperson said that the company “continues discussions with ByteDance leadership and other interested parties. We know that any approved deal must satisfy all regulatory and national security concerns.”
Surprisingly, both the statements seem to convey that Microsoft is still trying to get some sort of deal with ByteDance.