Chinese company ByteDance rejects Microsoft's offer and sells TikTok to Oracle. At least if Beijing cooperates.
Microsoft's offer to buy TikTok's US business is turned down by ByteDance, the Chinese owner of the TikTok platform.
The American computer giant Microsoft announced this local time on Sunday evening.
Bytedance has one deal closed with software company Oracle about the activities of video app TikTok in the United States.
Oracle will become Bytedance's “technology partner” and will continue to use the user data from TikTok in the US manage.
Unclear is how much of TikTok's business remains in the hands of Bytedance and its investors.
Donald Trump had earlier demanded that ByteDance would be TikTok's US operations sell.
The deadline was September 15. Otherwise, the app forbidden in the US, Trump said.
The deal that has now been made with Oracle will therefore CANNOT take place in the form of a sale, but a 'restructuring'.
Microsoft is licking its wounds:
ByteDance informed us today that they will not sell TikTok's US operations to Microsoft. We are confident that our proposal would have benefited TikTok users while protecting national security interests. '
Oracle will be TikTok's "trusted tech partner," the Wall Street Journal reported, citing an anonymous source.
However, the Chinese company Bytedance still has some time before the deal approval needed from the government of the Chinese government.
Beijing had already stated earlier that it would not accept a forced sale of the American activities of the video app.
Chinese officials believe a forced sale will affect both ByteDance and the Chinese government weak would appear to pressure from Washington, insiders told Reuters. They want to remain anonymous because of the sensitive situation.
Chinese state broadcaster CGTN reports that Bytedance is operating in the US CANNOT will sell to Microsoft or to Oracle.
Also, the source code of TikTok is in no case transferred to Oracle or any other potential US purchaser.
Without it algorithms a takeover of TikTok is a lot less interesting because of that DETERMINED what videos the mostly very young users get to see.
ByteDance and Oracle did not immediately respond to requests for comment on what it feels like to be distracted by China.
The White House also declined to respond.
Supermarket concern Walmart that had joined Microsoft's bid said on Sunday that the HOWEVER remains interested in an interest in TikTok.
Regardless, the company says it intends to hold further discussions with Bytedance leadership and other interested parties.
Orcacle is also under the control of co-founder Larry Ellison. He is a wealthy businessman from tech hub Silicon Valley.
The Jewish Billionaire finances also partly the election campaigns of Donald John Trump with which he is best friends.
Also the late Steve Jobs from Apple often visited Larry.
Jobs was even wedding photographer at Ellison's third wedding in 2003.
He has since been divorced again.
His two children David and Megan work as film producers Hollywood.
Lawrence Joseph Ellison has a net worth of 75 billion dollars.
He bought the Hawaiian island Lanai for more than half a billion dollars.