Popular short video sharing app TikTok‘s parent company ByteDance has chosen Oracle over Microsoft as its preferred suitor to buy its US business, according to the reports. Microsoft confirms on Sunday that its bid for TikTok was rejected. Meanwhile, President Donald Trump promises to follow through with a plan to ban the Chinese-owned app in the U.S. over spying concerns.
Notably, Microsoft had been first in a race to buy TikTok’s operations in the US, Australia, Canada, and New Zealand. However, Oracle reportedly winning the bid to be a technology partner instead.
Interestingly, any deal will go for review to the Committee on Foreign Investment in the United States (CFIUS). CFIUS is a U.S. government group, chaired by Treasury Secretary. Moreover, the committee will study mergers over national security concerns.
Meanwhile, Oracle has its own history of collaboration with the US government. Now, this possible partnership also seems like a strategic move amid the growing tension between China and the White House.
Oracle’s cofounder is Larry Ellison, a major Trump fundraiser.
Funny how someone from Trumpworld always miraculously manages to win big from every policy decision. https://t.co/7RYn2qSy4i
— Brian Tyler Cohen (@briantylercohen) September 14, 2020
Earlier this, Trump had given TikTok 45 days to sell its US business or face a ban in the country. This popular short-video app has been facing heat from governments in both US and India.
India banned Bytedance-owned apps TikTok and Helo over a month back, because of the Galwan Valley skirmish with China. India also banned over 58+118 other Chinese apps in the country including PUBG.