Microsoft issued a brief statement on Sunday confirming that ByteDance, the parent company of TikTok, had rejected its bid to buy the app's activities on USA. Meanwhile, ByteDance seems ready to announce a deal with Oracle, the only other known US company left in the game.
Microsoft did not specify what changes it had proposed to the service. However, today's announcement comes after a weekend report by the China Morning Post, that ByteDance was unwilling to sell the highly effective algorithm its in a US bidder. To keep users connected to TikTok, an American buyer would have to rewrite the code, which was so essential to the success of the service. According to the report, ByteDance informed both US officials and potential buyers of its decision.
«We are sure that our proposal would be good for its users TikTok, while protecting the interests of national security. To do this, we would make significant changes to ensure that the service met the highest standards of security, privacy, cybersecurity and the fight against misinformation, as we made clear these principles in our statement in August. We look forward to seeing how the service will evolve in these important areas", Said Microsoft.
Microsoft's announcement comes just days before the September 15 deadline set by the US President Donald Trump. Microsoft confirmed in early August that it was considering buying US TikTok.
With Microsoft out of the race, Oracle is the only known American candidate, and there are reports that Oracle has been selected as the winner, a claim that has not been confirmed by representatives of ByteDance, Oracle or the US, according to with Engadget information. However, a source confirmed that TikTok intends to enter into an agreement with Oracle, although the terms of the agreement remain unclear.
Η Wall Street Journal adds that Oracle will be announced as TikTok's "trusted technology partner" in the US.
Oracle, for its part, has not said how it can integrate TikTok into its existing strategy or what its plans are for American service business.