Report that Reuters news agency in The Wall Street Journal. Oracle will become Bytedance’s technology partner and will manage TikTok’s user data in the US, sources say. The deal would not come in the form of a sale, but it is called a ‘restructuring’.
TikTok parent company Bytedance spoke with several major US tech companies about a takeover of the US operations of the popular video app. President Donald Trump threatens to ban the video app in the US if there isn’t a deal before Tuesday. The US government fears that personal data collected by TikTok will end up with the Chinese government.
Chinese state broadcaster CGTN reports that Bytedance will not sell its US operations to Microsoft or Oracle. Also, TikTok’s source code will not be transferred to Oracle or any other possible US purchaser.
Without the algorithm, an acquisition of TikTok is a lot less interesting because it determines which videos users see.
US and China approval required
ByteDance and Oracle have not responded yet. The White House declined to comment. Bytedance needs approval from the governments of the United States and China for the deal.
Microsoft’s bid declined
Microsoft announced earlier on Sunday that Bytedance had not chosen the company. “We are confident that our proposal would have benefited TikTok users while protecting national security interests,” Microsoft reported.
China is against a forced sale of TikTok in the US. The country’s government would already list it last month have adjusted of technologies that cannot be sold abroad without government approval, so that TikTok can only be sold after a green light from Beijing.