ByteDance has selected Oracle as its partner for a deal to keep TikTok operating in the U.S.
, a source familiar with the talks confirms toThe decision comes as ByteDance has rejected a bid by Microsoft that earlier this summer was seen as the likely option for the company as it looked to avoid a shutdown of the popular social media app amid increased tensions between the U.S. and China. Microsoft confirmed that its bid had been rejected in a statement on its corporate blog on Sunday night.
But ByteDance, facing a short timeline to strike a deal, ultimately felt that Oracle — which has curried favor with Trump — was the best partner to address the security concerns that have plagued the app since it first came to the U.S. in 2018. According to the source, Oracle is being brought on board as a tech partner and not as an outright buyer of TikTok's U.S. business. It's unclear whether Oracle will acquire a share in TikTok as a result of the partnership.
The news follows an Aug. 6 executive order from Trump that called for TikTok to be banned in the U.S. if ByteDance didn't sell its American operations. Trump has cited national security concerns as the reason for the ban, arguing that ByteDance could give the Chinese government access to data from its U.S. users. The company was given a mid-September deadline to divest of the business.
China complicated ByteDance's ability to strike a deal when, in late August, it issued new export rules that would prevent TikTok from selling the technology that powers the algorithm behind its addictive"For You" feed, which learns about user behavior over time in order to serve up the most relevant videos.
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