TikTok picks Oracle as its US tech partner, rejecting Microsoft’s bid

After rejecting Microsoft’s bid earlier today, TikTok’s parent company ByteDance picked Oracle as its US tech partner, according to a source familiar with discussions between the companies.

Microsoft first released a short statement about its attempted purchase.

“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,” said Microsoft via its official company blog. “To do this, we would have made significant changes to ensure the service met the highest standards for security, privacy, online safety, and combating disinformation, and we made these principles clear in our August statement. We look forward to seeing how the service evolves in these important areas.”

The White House had already established a September 20 deadline for the Chinese tech company to sell its US division.

Before Oracle announced its interest in the social video app, Microsoft was the favorite to be picked by ByteDance, according to sources.

Oracle founder Larry Ellison hosted a fundraiser party at his California home in February for President Trump’s re-election campaign. About 300 Oracle workers protested, stating the chairman violated policies related to ethics, inclusion and diversity.

ByteDance had already sued the Trump administration on August 6, 2020. The company had said the executive order “has the potential to trip the rights of that community without any evidence to justify such as extreme action, and without any due process.”

The Trump administration had said the app could be manipulated by the Chinese government, even though TikTok stated the data of US users is stored outside of China.

[Sources]: CNBC: Oracle poised to become TikTok’s U.S. technology partner after Chinese owners reject Microsoft’s bid. Microsoft Blog: Microsoft Statement on TikTok. Time: Oracle Employees Walk Out to Protest Chairman Larry Ellison’s Trump Fundraiser. TikTok: Why we are suing the Administration.