tashatuvango - stock.adobe.com

Microsoft drops out of TikTok talks, paves way for Oracle partnership

Microsoft confirms it is dropping out of the running to acquire the US operations of TikTok, leaving the way clear for an imminent partnership deal with Oracle

Alex Scroxton
By
  • Alex Scroxton, Security Editor

Microsoft has announced it is dropping out of the race to acquire the US operations of TikTok, the Chinese-owned short-form video-sharing app that has found itself at the centre of US president Donald Trump’s trade war with China.

In a brief statement on Sunday 13 September, Microsoft confirmed it was no longer pursuing an acquisition of TikTok in the US and other anglophone countries – the UK excepted – that could possibly have avoided a total ban on TikTok, after being rejected by the platform’s owner ByteDance.

“ByteDance let us know today they would not be selling TikTok’s US operations to Microsoft. We are confident our proposal would have been good for TikTok’s users, while protecting national security interests,” said a Microsoft spokesperson.

“To do this, we would have made significant changes to ensure the service met the highest standards for security, privacy, online safety, and combatting disinformation, and we made these principles clear in our August statement. We look forward to seeing how the service evolves in these important areas.”

This paves the way for the unlikely rival bid led by consumer-averse enterprise software giant Oracle to succeed. Indeed, according to a number of reports, this is likely to be announced imminently.

Citing anonymous sources, the Washington Post reported that TikTok had proposed an arrangement whereby ByteDance retained ownership of TikTok but outsourced management of its data to a cloud partner – presumably Oracle. This would appear to align with reports in Chinese state media that suggest ByteDance will not be selling TikTok.

The proposal may also see ByteDance move its headquarters out of China to get around concerns that it would still be subjected to Chinese legislation that gives Beijing the right to force Chinese companies to hand over data they hold – which has also been a concern in the long-running Huawei controversy.

It is unclear if this arrangement would satisfy the Trump administration enough to allow TikTok to continue to operate. However, Larry Ellison, Oracle chairman and chief technology officer, has previously aligned himself with Trump, whereas Microsoft’s Bill Gates has frequently clashed with him.

Both Oracle and TikTok declined to comment on the latest developments at this stage.

Read more about TikTok

Content Continues Below

Read more on Privacy and data protection

Start the conversation

Send me notifications when other members comment.

SearchCIO

  • 5 ways to keep developers happy so they deliver great CX

    Companies need to work on ensuring their developers are satisfied with their jobs and how they're treated, otherwise it'll be ...

  • Link software development to measured business value creation

    Companies must balance customer needs against potential risks during software development to ensure they aren't ignoring security...

  • 5 digital transformation success factors for 2021

    With the right planning, leadership and skills, companies can use digital transformation to drive improved revenues and customer ...

SearchSecurity

  • 8 benefits of a security operations center

    A security operations center can help lessen the fallout of a data breach, but its business benefits go much further than that. ...

  • Weighing remote browser isolation benefits and drawbacks

    Remote browser isolation benefits end-user experience and an organization's network security. Compare the pros, cons and cost ...

  • Compare 5 SecOps certifications and training courses

    Explore five SecOps certifications available to IT professionals looking to demonstrate and enhance their knowledge of threat ...

SearchNetworking

  • New Celona 5G platform nets TechTarget innovation award

    Celona 5G technology uses Citizens Broadband Radio Service spectrum to bring private mobile networking to the enterprise, ...

  • Network pros share Cisco DevNet certification advice

    Cisco DevNet certifications require a lot of time investment, but network pros who pursue the certifications say the gained ...

  • Cloud automation use cases for managing and troubleshooting

    Cloud automation use cases highlight the benefits these tools can provide to companies evaluating how best to manage and ...

SearchDataCenter

  • Avoid server overheating with ASHRAE data center guidelines

    Finding the right server operating temperature can be tricky. ASHRAE standards provide guidance for all server classes and what ...

  • Hidden colocation cost drivers to look out for in 2021

    These unexpected charges and fees can balloon colocation costs for enterprise IT organizations.

  • 5 ways a remote hands data center ensures colocation success

    Off-site hardware upkeep can be tricky and time-consuming. With remote hands options, your admins can delegate routine ...

SearchDataManagement

  • MongoDB Atlas Online Archive brings data tiering to DBaaS

    MongoDB's online archive service gives organizations the ability to automatically archive data to lower-cost storage, while still...

  • Ataccama automates data governance with Gen2 platform update

    Data management vendor Ataccama adds new automation features to its Gen2 platform to help organizations automatically discover ...

  • IBM to deliver refurbished Db2 for the AI and cloud era

    IBM has a tuned-up version of Db2 planned, featuring a handful of AI and machine learning capabilities to make it easier for ...

Close