Tiktok Rejected Microsoft Bid At The Eleventh Hour To Pave The Way For Oracle To Make The Bid
Trump Stated The Oracle Is A Great Company For The Country
The tech giant Microsoft has offered video-sharing application TikTok to buy their US operations due to the governmental issues between China and United States, but TikTok rejected Microsoft bid, which benefited the company Oracle towards making a sizeable bit to buy the firm. The United States President Donald Trump has given the Chinese-owned application TikTok to either sell their operations in America or completely shut down the app inside the country before September 15. This shutdown of multiple Chinese apps along with TikTok has been claimed by the US government as a threat to the nation’s security and protection.
Selling of US operations of TikTok
Due to the increasingly high and popular demand along with the consumption of TikTok in the United States, Oracle and Microsoft have been in a race to acquire TikTok before one another. ByteDance, the parent company of TikTok rejected Microsoft bid, which allowed Oracle to successfully acquire the firm’s US operations. Oracle is a corporation which mainly manages and sells cloud systems and database technologies to multiple corporations. It has been reported that Oracle is also looking forward to buy TikTok operations in New Zealand, Australia, Canada, along with the United States, including investment firms like Sequoia Capital and General Atlantic.
As it is being said that ByteDance’s video-sharing application TikTok rejected Microsoft bid, which has been in competition with Oracle, the spokesperson from TikTok declined to offer any comments of neither the Microsoft’s bid rejection nor the speculation regarding Oracle.
Even though there have been no comments from ByteDance as TikTok rejected Microsoft bid, Microsoft has provided a complete statement on Sunday, saying that ByteDance has provided them with finalized results that they would not be selling the US operations of their video-sharing app to them. Microsoft also said that if their offer has been accepted, it would have been very good for the firm as well as its users, while also protecting the national interests and safety of the United States. They also added that they would be looking forward to how the other company uses its resources to evolve the services in the required areas.
After TikTok rejected Microsoft bid, it has paved an easy path for Oracle to take the US operations of TikTok, which has been regarded as a great company by President Donald Trump. The Head chairman of Oracle, Larry Ellison, also held a fundraiser for President Trump in his support for his electoral comeback in the upcoming elections in November.
Earlier in the month of September, Trump had also said that the US government should also get a considerable portion of the sale price for the US operations of the video-sharing app before TikTok rejected Microsoft bid for Oracle if the business firm is bought by an American corporation. There are issues regarding the final deadline for selling the company. According to the executive order by Trump, the deadline is September 20, while the US government says that the last day for selling TikTok is September 15.
In the past few months, President Trump has ordered the owner of TikTok to sell their US operations to another firm within the time period of 90 days as they are posing a threat to the security of the nation. Other Chinese applications, including WeChat, have also been banned across the country, and the Chinese tech firm Huawei is also not allowed to advertise their products across the United States as the data collected by these firms regarding the American citizens would possibly be shared with the Chinese government.
China has denied all claims made by the United States regarding national security threats. In the past few days, TikTok rejected Microsoft bid, which has paved a path for Oracle to take the video-sharing application.