ByteDance rejects Microsoft’s bid for Tiktok

Satya Nadella, CEO of Microsoft Corporation, poses during the Bloomberg event on Tuesday, January 21, 2020, at the opening day of the World Economic Forum (WEF) in Davos, Switzerland.

Simon Dawson | Bloomberg Getty Images

Microsoft said on Sunday that the Chinese owner of the social video app TikTok had chosen not to sell it to TikTok’s US assets. Bytec is now in exclusive talks with Oracle over a stake in TeakTalk, sources close to the situation said.

The development comes two days ago when a deadline President Trump insisted on an agreement. Trump has said that if no deal is signed by the US on 15 September, Tikok will be banned.

Microsoft said in a blog post, “ByteDance told us today that they will not sell Tiktok’s US operations to Microsoft. “We believe our proposal will be good for users of Tikkok while protecting national security interests. To do this, we must have made significant changes to ensure that service security, privacy, online security, and war disruption are safe.” Meet the highest standards of settlement, and we have clarified these principles in our August statement. We look forward to seeing how service develops in these key areas. ”

An Oracle representative did not immediately respond to a request for comment.

Following the report on Oracle’s interest in TikTok on Thursday, Oracle CEO Safra Catz began the company’s quarterly earnings call with analysts, stating, “Before we begin, I want to make sure you understand that we Will not comment about the press reports. Tiktok. So no need to ask. ”

Microsoft said on 2 August that it was negotiating to buy TikTok in the US, Canada, Australia and New Zealand. Weeks later, Walmart said it believed working on a possible Tiktok deal with Microsoft could be positive for Tiktok users and regulators. A spokesperson for Tiktok denied that it was negotiating to sell its US arm to Triller, a competitive video-sharing app. Bloomberg had reported that Triller was working on the bid in association with Centricus Asset Management.

Microsoft’s failure to buy the Tiktok volume for a symbolic loss to Satya Nadella, who captured Microsoft from Steve Ballmer in 2014. Under Ballmer, Microsoft sought to buy Yahoo in 2008, but the bid was eventually withdrawn after Yahoo declined the offer, even increasing the amount Microsoft was willing to pay.

TikTok generates revenue through advertisements that show people to scroll through videos displayed in the app. Microsoft has its own advertising business, which also includes the Bing search engine. Nadella also worked in advertising in other areas before becoming CEO.

– Alex Sherman of CNBC contributed to this report.

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