American software giant Oracle has won the bid for TikTok’s U.S. operations, a video sharer app, and will allow the popular social network to continue operating in the country, several media reported on Sunday.
Oracle wins bid for TikTok’s U.S. operations
Oracle prevailed in bidding to Microsoft, which on Sunday announced in a statement that TikTok owner ByteDance had informed them that they would not be sold “their U.S. operations.”
As the Newspaper advances, it is expected that Oracle has soon been selected as TikTok’s “reliable technology partner” in the United States, in an agreement that will not be structured as a proper sale of the application’s operations.
Microsoft says ByteDance rejected its bid for TikTok in the U.S. https://t.co/WnicJV3IJt
— Bloomberg Technology (@technology) September 14, 2020
President Donald Trump had given ByteDance a deadline that expires this September 15 to sell its U.S. operations to a local company or leave the country.
TikTok is a National Security Treat
The White House considers TikTok a problem to national security because it is owned by a Chinese company, while ByteDance has rejected U.S. accusations that it would share information from U.S. users with the Chinese government.
Trump has already shown in August his interest in Oracle, which has close ties to the White House, taking over TikTok’s U.S. operations.
TikTok, which in the US has more than 80 million users, is one of the most growing social networks in recent years, where it has become the main entertainment for many teenagers and a marketing channel for major celebrities.
China’s Foreign Ministry has already made it clear that it opposed the forced sale of TikTok, an operation that it believed would violate the principles of the World Trade Organization (WTO).
Indeed, the Chinese government sees its intention to sell TikTok as one more chapter of the Beijing-Washington trade war, which seeks to contain the growing technological power of the Asian giant, which has already seen telecoms firm Huawei face restrictions, as well as the popular social network WeChat, owned by digital conglomerate Tencent.