TikTok seeks partnership with Oracle after rejecting Microsoft bid

midian182

Posts: 6,017   +50
Staff member
What just happened? Microsoft has confirmed that it will not be acquiring TikTok’s US operations. According to reports, owner ByteDance won’t be selling the source code for its video-sharing app to any American firms but will instead seek a partnership with Oracle in the hope of satisfying the Trump administration's demands.

Despite its massive popularity, TikTok has long come under scrutiny for its alleged privacy issues. It’s been banned by numerous US government agencies and political campaigns, while also being blasted by some within the tech industry.

In August, Donald Trump signed a pair of executive orders that prohibit any US transactions with ByteDance, leaving it with little option but to sell TikTok's US operations. Microsoft had appeared favorite in the race, possibly through a partnership with Walmart, but the Redmond firm has been knocked back.

“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” Microsoft said.

“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.”

According to The Washington Post and Reuters, ByteDance is now pursuing a partnership with Oracle—another firm that was vying to buy TikTok. The details of any potential partnership are unclear, but not handing over the source code should appease the Chinese government, which reportedly would rather see TikTok banned in America than sold to a US firm, while satisfying the Trump administration's demands.

Will Larry Ellison's admiration of Trump help TikTok's plan?

The deal could also see some of ByteDance’s biggest backers gain minority stakes in TikTok’s US operations, according to sources.

The plan all depends on whether Trump gives it the go-ahead. One advantage Oracle may have is its chairman, Larry Ellison, who was one of the few big tech names to support the president publicly.

TikTok is heading to court to challenge Trump’s ban, which comes into effect on November 12 following an extension. A hearing is scheduled for tomorrow. The company is also suing the administration over the order.

Center image credit: drserg

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QuantumPhysics

Posts: 3,351   +3,174
All they need to do is hold out till after November’s elections.

After that, this madness will be going away.
 
Microsoft might have felt risky handling a Chinese origin app though it looks huge profitable. However, it's a good deal missed out.
 

Endymio

Posts: 396   +282
>> " The details of any potential partnership are unclear, but not handing over the source code should appease the Chinese government "

For those claiming the Chinese government doesn't have both hands in TikTok, if not, then why would they be concerned about foreign firms seeing the source code?

Microsoft might have felt risky handling a Chinese origin app though it looks huge profitable. However, it's a good deal missed out.
It's pretty clear that the TikTok nixed the deal, not Microsoft ... almost certainly due to pressure from their own government.
 

mbrowne5061

Posts: 1,604   +906
All they need to do is hold out till after November’s elections.

After that, this madness will be going away.
No it won't.

If either side wins without a landslide victory, the other is going to cry foul. And a landslide victory for either side ain't happening. I also fully expect to see Trump run again in 2024 if he loses in 2020.
 

JamesBlond

Posts: 17   +4
Microsoft have messed up enough shirt, they should not be buying anything else, rather they should be selling off things like OFFICE and TEAM's to real companies who focus on things like that... when they get their OS correct then they can plan to grow to a new market
 

sorten

Posts: 43   +57
TechSpot Elite
Microsoft have messed up enough shirt, they should not be buying anything else, rather they should be selling off things like OFFICE and TEAM's to real companies who focus on things like that... when they get their OS correct then they can plan to grow to a new market
Teams and Office 365 are some of the most popular and successful business software. Why would Microsoft sell them?
 

Reallyhow

Posts: 34   +74
Always nice to watch a government restrict the free expression of the people by attempting to ban social media platforms.
 
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GeforcerFX

Posts: 956   +442
Microsoft have messed up enough shirt, they should not be buying anything else, rather they should be selling off things like OFFICE and TEAM's to real companies who focus on things like that... when they get their OS correct then they can plan to grow to a new market
You have that backwards, office, teams, and Azure are the focus now at Microsoft, Windows is the side project.