The agreement, revealed by anonymous sources to local media, comes a few days after the ban on the social network enters into force by order of Trump
ByteDance, the Chinese company that owns TikTok, has chosen Oracle as its “technology partner” in the United States, according to sources familiar with the matter cited this Sunday by The Wall Street Journal and AP. Hours before the news was released, Microsoft had posted on its blog that the popular short video social network had rejected its purchase proposal. The negotiation of the acquisition is forced by an executive order signed by President Donald Trump in mid-August, in which he gave the Asian company 90 days to end its operations in the United States and dispose of the data collected, accusing alleged risks to national security that comes with the popular app among teens.
Microsoft reported through a statement this Sunday that ByteDance “let them know that it would not sell them the operations of TikTok in the United States.” Walmart had planned to partner with the company founded by Bill Gates in the business deal. The technology company said on the blog that “it would have made significant changes to ensure that the service meets the highest standards of security, privacy, online security and the fight against misinformation.” Trump justified the ban on the app, which should take effect on September 20, by capturing “large amounts of information from its users.” The only way that it does not force its closure is for it to pass into the hands of an American company.
The social network filed a lawsuit in August against the Trump Administration for wanting to ban the app in the US “without evidence to justify it” and “putting thousands of jobs at risk.” The Chinese company has indicated that the executive order has the potential to “deprive the millions of users of the platform of their rights.” The basis of their argument in the Los Angeles, California courts is that they have been denied democratic due process to defend themselves. But while leading a court battle, negotiations got underway. Once the agreement with Oracle is made official, the next step is for the White House and the Committee on Foreign Investment in the United States to approve it.
It is not known whether Trump will approve the deal. Local media speculate that it can play in the favor of the company that won the tender that its co-founder and president, Larry Ellison, organized a fundraiser for the US president this year. A move China took a few weeks ago may further complicate negotiations. Beijing updated the rules for export control, which cover a variety of technologies it considers sensitive. The new rule means that ByteDance may need a special license to sell its technology to any American interested party.