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TikTok is stepping over Microsoft to ink a landmark deal with software giant Oracle,for purchase of its U.S. operations.
Oracle agreement with TikTok’s Beijing-based parent company, ByteDance Ltd., ends fears over the future of the music-video app in the U.S.
Accused of being a spy machine for Beijing, Washington gave the Chinese company a November deadline to sell its operations or risk forced closure.
The deal with Oracle, touted by people conversant with the matter as more of a corporate restructuring than an outright sale, deepens trade wars between the two countries and opens a new trajectoryin how the Trump’s administration hopes to tackle China’s homegrown technology companies.
As part of the deal, Oracle is expected to take a stake of a newly formed U.S. business actng as TikTok’s U.S. technology partner and housing TikTok’s data in Oracle’s cloud servers.
According to Bloomberg, early offers from both parties valued the U.S. business at about $25 billion, but that was before Chinese officials weighed in with new rules imposing limits on technology exports, said people with knowledge of the matter.
“ByteDance let us know today they would not be selling TikTok’s US operations to Microsoft,” Redmond, Washington-based Microsoft said in a statement on Sunday. “We are confident our proposal would have been good for TikTok’s users, while protecting national security interests,” Bloomberg reports.
