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Microsoft loses to Oracle in bid to claim TikTok's US operations

(Image credit: Pixabay)

Microsoft has confirmed it will not buy TikTok in the United States. In a statement on Microsoft's corporate site, the company confirms that TikTok owner ByteDance has declined its proposal. Meanwhile, the Washington Post reports that Oracle has won the race to acquire the popular app's US operations.

"We are confident our proposal would have been good for TikTok’s users, while protecting national security interests," the statement reads. "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."

According to anonymous sources speaking to the Washington Post, ByteDance has proposed to the US government that rather than sell its US operation entirely, it retain ownership, while transferring cloud management to a US company. If this is true, the Oracle partnership makes sense. It makes a lot of sense for other reasons, too: According to the same Washington Post report, Oracle executives are "close" with US President Donald Trump.

Trump issued an executive order in September banning any transactions related to TikTok. A similar order was targeted at the Tencent-owned WeChat. 

Shaun Prescott
Shaun is PC Gamer’s Australian editor and news writer. He mostly plays platformers and RPGs, and keeps a close eye on anything of particular interest to antipodean audiences. He (rather obsessively) tracks the movements of the Doom modding community, too.