The owner of Tektok has chosen Oracle as their preferred suitor over Microsoft to buy the popular video-sharing app, according to a source familiar with the deal.
Microsoft announced on Sunday its bid to buy TikTok by removing a major suitor for the Chinese-owned app a week before President Donald Trump promised to comply with a plan to ban it in the US Has been rejected.
Microsoft said in a Sunday statement that Tytok’s parent company, Bytens, “tell us that today they will not sell Tiktok’s US operations to Microsoft.”
The Trump administration has threatened to ban Tiktok by mid-September and ordered ByteDance to sell its US business, claiming national-security risks due to its Chinese ownership. The government concerns Chinese authorities with having a user data funnel. Tiktok denies that it is a national-security risk and is suing the administration to prevent it from threatening sanctions.
Walmart planned to partner with Microsoft in the deal. It is unclear whether Walmart is still interested. Oracle has declined to comment.
TikTok also declined to comment on Sunday.
Microsoft said on Sunday it was confident that “our proposal would be good for users of Tikkok while protecting national security interests.” The company stated that “significant changes must have been made to ensure that the service meets the highest standards for security, privacy, online security, and extortion protection.”
— The Associated Press