ByteDance will not sell the US operations of its short video platform TikTok to either Microsoft or Oracle, nor will the company give the source code to any US buyers, a new report by Chinese state media CGTN said quoting sources.
Microsoft had earlier confirmed that the company’s bid for TikTok has been rejected. “ByteDance let us know today they would not be selling TikTok’s U.S. operations to Microsoft. We are confident our proposal would have been good for TikTok’s users, while protecting national security interests,” the company said.
This sparked rumours that Oracle is the only remaining bidder and it will be entering a technology partnership with TikTok. CGTN’s report confirms this by saying TikTok will be picking the company as a “trusted tech partner” in the US.
The short-video platform has taken a hit amid rising geopolitical issues between China and other countries including US and India. US President Donald Trump had earlier issued an executive order asking the company to sell its US operations to an American company. The deadline for this deal ends on 20 September, and Microsoft was considered to be the leading bidder till today.
Following Trump’s order, the Chinese government revised its policies putting export restrictions on artificial intelligence (AI) platforms built in the country. Reports have said that this may have led Bytedance to negotiate the terms of its deal(s).
TikTok’s future in India though hands in the balance despite these deals. The platform has now been banned in the country for over a month and competing platforms from companies like Sharechat, InMobi and others have been gaining from the same.