Oracle appears to be the TikTok buyer in the U.S. leaving Microsoft out, which had been considered a front-runner to buy until this weekend.
TikTok rejected Microsoft’s plan and reached an agreement to sell its U.S. operations to the software company Oracle on Sunday.
The deal came after the Trump administration threatened to ban the app unless the Chinese company sold its U.S. business to a local company. In November, the government mentioned TikTok as a national security threat, and the U.S. and they opened an investigation into the app. This forced the decision to sell the American operations until today when it seems to close a deal. Now, the company will also undergo internal change.
Paul Triolo, head of global technology policy at the Eurasia Group, said: “There’s a bit of a reciprocity process going on here since China doesn’t allow U.S. tech companies like Facebook and Google,” and then added: “All of these actions are part of an effort by China hawks in the U.S. government to push for this decoupling, which includes a whole range of issues but has sort of crystallized in the last three to six months into this view that Chinese companies are untrusted vendors.”