Microsoft was the first company to show interest in TikTok after the conflict between the social network and the United States government, but the Chinese company entered into a partnership with Oracle to keep its business in the land of Uncle Sam. According to Reuters, the owner of Windows 10 would have offered $ 20 billion to ByteDance, but the deal did not happen because Bill Gates’ company angered the Chinese firm.
According to sources at the news agency, Microsoft lost points with ByteDance CEO Zhang Yiming when he described TikTok as a security risk. In a statement sent to Donald Trump last month, Microsoft chief Satya Nadella said he would bring “first-class privacy and protection” if he took over the social network’s operations.
In addition to upsetting the CEO of ByteDance, Microsoft’s offer allegedly failed to convince investors at the Chinese firm. According to sources close to the deal, the company tried to buy TikTok’s operations for about $ 20 billion plus performance bonuses, which was not accepted by the business owners.
Partnership with Oracle
To maintain control of the service and avoid banning TikTok in the United States, ByteDance opted for a strategic agreement with Oracle. The software maker will be the “trusted partner” of the Chinese company in the country led by Donald Trump.
The partnership with Oracle aims to end the US government’s concerns about user data being stored in China. The US company will assist ByteDance in maintaining information in the United States and also backups in Singapore.
The proposal is being evaluated by the United States government and a result is expected to be released soon.