TikTok takeover: ByteDance rejects Microsoft’s offer, towards an agreement with Oracle?


It’s official: Microsoft will not buy TikTok.

Oracle moves into pole position for the “buyout” of TikTok. © prima91 – stock.adobe.com

Microsoft will not buy TikTok

Microsoft has issued a statement ending the buyout rumors: “ByteDance let us know today that they will not sell TikTok’s US operations to Microsoft”. The Redmond firm takes note but regrets the rejection of its offer.

We are confident that our proposal would have been the right one for TikTok users, while protecting national security interests.

Microsoft’s statement goes on to say: “ to do this, we would have made significant changes to ensure that the service meets the highest standards for security, privacy, online safety and anti-disinformation, and we have made these principles clear in our August declaration “. These “Changes” mentioned in the press release were apparently too important for ByteDance to accept Microsoft’s offer.

Buying TikTok is complicated

Microsoft’s offer to buy TikTok has been public since the beginning of August. A few days later, Oracle also positioned itself and everything indicated that it was going to play out between the two companies. An agreement even seemed imminent, for a sum of around 20 to 30 billion dollars.

But the redemption “From part of TikTok” by an American company is not a simple matter, precisely because ” this part “ of TikTok is not clearly defined. The strengthening of Chinese regulations on technological exports greatly complicates the sale of technical elements of TikTok – including the coveted algorithm developed by ByteDance.

Oracle in pole position to become a “technology partner”

According to Axios, Oracle “Would be more likely than Microsoft to agree to an agreement in which it serves more as a cloud service provider rather than a traditional parent company”. The media specifies that Oracle is already working with certain shareholders of ByteDance, which pushes ByteDance and China to favor Oracle to maintain a certain level of control over the application. Axios also evokes a deal facilitated by the ties that unite certain Oracle executives with the American president.

In today’s edition, the Wall Street Journal reports that Oracle “Won the tender for the US operations of the TikTok application. […] Oracle should be advertised as “The trusted technological partner” of TikTok in the United States ”. The words used here have a very strong meaning: it would not be a pure and simple takeover of TikTok and its technologies, but indeed a partnership agreement. It remains to be seen whether the deal will be convincing enough to suit the US administration. As a reminder, the decree signed by Donald Trump prohibiting transactions between ByteDance and American companies will come into force this Sunday, September 20. On Friday, the US president declared that this deadline would not be extended.

The eviction of Microsoft from the negotiations will in any case accelerate the signing of an agreement, which should be announced very soon by the parent company of TikTok.

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