Oracle Reportedly Agrees Deal for TikTok's US Operations, But Chinese Media Cast Doubt on Any Sale

Amid reports Monday morning that Oracle has won the battle with Microsoft to acquire TikTok's U.S. operations, China's state-run English TV channel is claiming that no sale with any U.S. buyer will go ahead (via Reuters).

tiktok logo

ByteDance will not sell TikTok's U.S. operations to Oracle Corp ORCL.N or Microsoft Corp MSFT.O and will not give the source code for the video platform to any U.S. buyers, China's state-run English television channel CGTN reported on Monday, citing sources.

People familiar with the matter told Reuters that ByteDance abandoned the sale of TikTok in the United States and decided to pursue a partnership with Oracle in hopes of avoiding a U.S. ban while appeasing the Chinese government.

ByteDance declined to comment on CGTN’s report.

A source also told the South China Morning Post that the tech upstart has decided not to sell or transfer the source code behind its popular video app.

The development follows a report from The Wall Street Journal on Sunday evening that claimed database software and cloud systems giant Oracle had closed the deal moments after Microsoft announced it had been rejected. The deal reportedly stopped short of an outright acquisition of all assets and intellectual property, with TikTok considering Oracle as a "trusted tech partner" instead.

In a blog post following the news, Microsoft wrote:

"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."

Microsoft was originally regarded as the frontrunner in acquisition talks with TikTok's China-based parent company, ByteDance, and provided a formal proposal that would have involved the purchase of TikTok's operations in the United States, Canada, Australia, and New Zealand.

Bloomberg on Monday cited sources claiming that terms being discussed between ByteDance and Oracle were "still evolving," but that one of the options being explored could see Oracle take a stake in a newly formed U.S. business while serving as TikTok's U.S. technology partner and housing the video app's data in Oracle's cloud servers.

Offers from both parties reportedly valued the U.S. business at about $25 billion, but that was said to be before Chinese officials weighed in with new rules imposing limits on technology exports.

Any deal would still need to be reviewed by the Committee on Foreign Investment in the United States (CFIUS), a U.S. government group chaired by the Treasury Secretary that studies corporate mergers for national security reasons.

President Donald Trump issued an executive order in mid-August demanding that ByteDance sell its U.S. operations within 90 days. Trump required ByteDance to announce its plan for the sale of TikTok in the U.S. by September 20 and complete a deal by November 12. The U.S. government will ban the Chinese video app by September 29 on national security grounds if it fails to submit its plan. TikTok unsuccessfully sued against the ban order in late August.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Top Rated Comments

laptech Avatar
31 months ago
Very hypocritical of China to say that it will not allow IP and software code to be in the hands of a US company but it has no problems stealing IP or software code from US companies.
Score: 37 Votes (Like | Disagree)
CarpalMac Avatar
31 months ago

Millions of teenage TikTok users are now wondering what the Hell is an Oracle?


Probably showing my old age there now too...
Score: 21 Votes (Like | Disagree)
Dwalls90 Avatar
31 months ago

Good. They should wait until the last minute of the deadline, fire all American employees and close shop. Do not give into bullies, especially if the bully is the the American government who apparently thinks it can dictate the world.
Unfortunately I have to agree. That's at least 1,400 more Americans unemployed, and Tik Tok was planning to employ up to 10,000 more Americans in the coming years. Not exactly great policy given the recession and unemployment numbers.

I'm not saying Tik Tok is totally innocent. Their apps seem to have a similar level of "spyware" that Facebook has. But if the US was truly worried about these concerns, then they would have taken serious action against Facebook after data harvesting and allowing 2016 election interference. Not sure why Americans feel fine if a US company or government has their information, but are up in arms if a foreign power does. In case anyone didn't already know this, the second any data is collected on you, you're extremely naive to think it can't ever be hacked or otherwise shared. This is why it's best that data isn't collected in the first place, regardless of the app or country it's run out of. If we're being honest, this isn't really about the nature of what Tik Tok's app or the CCP may be up to, its just more tit-for-tat foreign policy. Blame China for the virus. Blame China for Tik Tok. Blame China for taking jobs that are realistically never coming back to the United States. And you can't forget the fact Tik Tok embarrassed Trump after the Tulsa rally.

The US thinks it can go Cold War against China or countries that don't do as they dictate, and that's not a viable long term strategy. Starting to sound an awfully lot like Russia.
Score: 16 Votes (Like | Disagree)
Eraserhead Avatar
31 months ago

China the ones that brought you covid19 and now this
Covid being a ******** in the US is 100% on Trump. Western intelligence knew about it in November 2019.
Score: 13 Votes (Like | Disagree)
ph001bi Avatar
31 months ago

('https://www.macrumors.com/2020/09/14/oracle-deal-buy-tiktok-us-beats-microsoft/')

Amid reports Monday morning that Oracle has won the battle with Microsoft to acquire TikTok's U.S. operations, China's state-run English TV channel is claiming that no sale with any U.S. buyer will go ahead (via Reuters ('https://uk.reuters.com/article/us-china-bytedance-tiktok-cgtn/bytedance-wont-sell-tiktok-us-operations-to-oracle-or-microsoft-cgtn-idUKKBN2650MC')).


A source also told the South China Morning Post ('https://www.scmp.com/economy/china-economy/article/3101362/tiktoks-algorithm-not-sale-bytedance-tells-us-source') that the tech upstart has decided not to sell or transfer the source code behind its popular video app.

The development follows a report from The Wall Street Journal ('https://www.wsj.com/articles/microsoft-drops-out-of-bidding-for-tiktoks-u-s-operations-11600039821') on Sunday evening that claimed database software and cloud systems giant Oracle had closed the deal moments after Microsoft announced it had been rejected. The deal reportedly stopped short of an outright acquisition of all assets and intellectual property, with TikTok considering Oracle as a "trusted tech partner" instead.

In a blog post ('https://blogs.microsoft.com/blog/2020/09/13/microsoft-statement-on-tiktok/') following the news, Microsoft wrote:
Microsoft was originally regarded as the frontrunner ('https://www.macrumors.com/2020/08/03/microsoft-confirms-plan-to-acquire-tiktok/') in acquisition talks with TikTok's China-based parent company, ByteDance, and provided a formal proposal that would have involved the purchase of TikTok's operations in the United States, Canada, Australia, and New Zealand.

Bloomberg on Monday cited sources ('https://www.bloomberg.com/news/articles/2020-09-13/oracle-is-said-to-gain-advantage-in-deal-for-tiktok-in-u-s') claiming that terms being discussed between ByteDance and Oracle were "still evolving," but that one of the options being explored could see Oracle take a stake in a newly formed U.S. business while serving as TikTok's U.S. technology partner and housing the video app's data in Oracle's cloud servers.

Offers from both parties reportedly valued the U.S. business at about $25 billion, but that was said to be before Chinese officials weighed in with new rules imposing limits on technology exports.

Any deal would still need to be reviewed by the Committee on Foreign Investment in the United States (CFIUS), a U.S. government group chaired by the Treasury Secretary that studies corporate mergers for national security reasons.

President Donald Trump issued an executive order in mid-August demanding that ByteDance sell its U.S. operations within 90 days ('https://www.macrumors.com/2020/08/15/tiktok-90-days/'). Trump required ByteDance to announce its plan for the sale of TikTok in the U.S. by September 20 and complete a deal by November 12. The U.S. government will ban the Chinese video app by September 29 on national security grounds if it fails to submit its plan. TikTok unsuccessfully sued against the ban order in late August.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News ('https://forums.macrumors.com/forums/political-news.218/') forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: Oracle Reportedly Agrees Deal for TikTok's US Operations, But Chinese Media Cast Doubt on Any Sale ('https://www.macrumors.com/2020/09/14/oracle-deal-buy-tiktok-us-beats-microsoft/')
Millions of teenage TikTok users are now wondering what the Hell is an Oracle?
Score: 13 Votes (Like | Disagree)
deevey Avatar
31 months ago

Millions of teenage TikTok users are now wondering what the Hell is an Oracle?
Millions of teenage users in China are wondering what the hell Tok Tok is ;)
Score: 7 Votes (Like | Disagree)

Popular Stories

iPhone trade in

Apple Adjusts Trade-In Values for iPhones, Macs, and More

Wednesday January 25, 2023 9:40 am PST by
After announcing new Mac and HomePod models last week, Apple adjusted its trade-in values for select devices in the United States. iPhone trade-in values decreased by up to $80, and most Android smartphones also went down. Mac trade-in values remained unchanged or increased by up to $40 depending on the model, while some Apple Watch models increased in value and others decreased. Trade-in...
iPhone 14 Pro Purple Side Perspective Feature Purple

iPhone 15 Pro Expected Later This Year With These 7 Exclusive Features

Tuesday January 24, 2023 4:53 pm PST by
Apple's next-generation iPhone 15 Pro and iPhone 15 Pro Max are expected to be announced in September as usual. Already, rumors suggest the devices will have at least seven exclusive features not available on the standard iPhone 15 and iPhone 15 Plus. An overview of the seven features rumored to be exclusive to iPhone 15 Pro models:A17 chip: iPhone 15 Pro models will be equipped with an A17...
Mac mini M2 2023

New 256GB Mac Mini and 512GB MacBook Pro Have Slower SSD Speeds Than Previous Models

Tuesday January 24, 2023 1:11 pm PST by
While the new Mac mini with the M2 chip has a lower $599 starting price, the base model with 256GB of storage has slower SSD read and write speeds compared to the previous-generation model with the M1 chip and 256GB of storage. A teardown of the new Mac mini shared by YouTube channel Brandon Geekabit reveals that the 256GB model is equipped with only a single 256GB storage chip, while the...
iOS 16

iOS 16.3 for iPhone Launching Next Week With These 4 New Features

Friday January 20, 2023 11:43 am PST by
In a recent press release, Apple confirmed that iOS 16.3 will be released to the public next week. The software update will be available for the iPhone 8 and newer and includes a handful of new features, changes, and bug fixes. Below, we've recapped bigger features in iOS 16.3, including support for physical security keys as a two-factor authentication option for Apple ID accounts, worldwide ...
iPhone 14 Pro Purple Side Perspective Feature Purple

iPhone 15 Expected to Feature Wi-Fi 6E Like Latest Macs and iPad Pro

Wednesday January 25, 2023 5:39 pm PST by
The iPhone 15 will support Wi-Fi 6E, according to a research note shared this week by Barclays analysts Blayne Curtis and Tom O'Malley. The analysts did not specify whether the feature will be available on all models or limited to the Pro models. Apple has added Wi-Fi 6E support to a handful of devices so far, including the latest 11-inch and 12.9-inch iPad Pro, 14-inch and 16-inch MacBook...
maxresdefault

Hands-On With the New M2 Pro Mac Mini

Tuesday January 24, 2023 1:45 pm PST by
The new M2-series MacBook Pro and Mac mini models launched today, marking the debut of the first M2 Pro and M2 Max chips. We have the M2 Pro Mac mini on hand, and thought we'd take a look at the machine and do a series of benchmarks to see how it fits into Apple's lineup. Subscribe to the MacRumors YouTube channel for more videos. Base model Mac mini machines come with either an M2 or M2 Pro...
apple tv 4k red image

Apple Releases tvOS 16.3

Tuesday January 24, 2023 10:10 am PST by
Apple today released tvOS 16.3, the third major point update to the tvOS 16 operating system that originally came out in September. Available for the Apple TV 4K and Apple TV HD, tvOS 16.3 comes six weeks after tvOS 16.2, an update that added Apple Music Sing. The tvOS 16.3 update can be downloaded over the air through the Settings app on the ‌‌‌‌Apple TV‌‌‌‌ by going to System > Software...
maxresdefault

Hands-On With the New M2 Max MacBook Pro

Thursday January 26, 2023 12:14 pm PST by
New 14-inch and 16-inch MacBook Pro models with the latest M2 Pro and M2 Max chips are available in Apple retail stores and are already in the hands of customers, and we picked up one of the new M2 Max machines to answer all of the questions MacRumors readers considering a purchase might have. Subscribe to the MacRumors YouTube channel for more videos. Yesterday, we asked MacRumors fans on...