According to Reuters, ByteDance has given up on selling TikTok’s US operations to an American company. Instead of the sale, the company would have chosen to close an agreement with Oracle, which would keep the two companies as technological partners in the country. Microsoft itself said the Chinese company declined its offer to buy the American division of TikTok.
Solving the data problem
Last month, President Trump had signed two executive orders with sanctions on ByteDance. The first obliged all US citizens and companies to cease any “transactions” with the company by 20 September. The second obliged ByteDance to sell TikTok’s US operations until November 12.
The reason for the blockade to the company would be the fact that the data of American citizens would be shared with the Chinese government, which would jeopardize the security of the United States.
Now, the Chinese media have published that ByteDance has no intention of selling TikTok in the USA anymore. The company’s new strategy aims to convince the American president that a partnership with Oracle would keep the data of all users of the application, globally, on American servers, while the backups would be located on Singapore servers.
On Sunday (13), the South Morning China Post reported that ByteDance would not sell its source code to an American company, according to a reliable source. This would be in line with new laws passed by the Chinese government at the end of last month, which force local companies to ask the government for permission to carry out this type of transaction.
Trump will need to be convinced
It is not known how President Donald Trump will react to the new proposal from ByteDance.
Apparently, the company should use another similar case as an argument: two years ago, China Oceanwide Holdings Group Co Ltd bought the American insurance company Genworth Financial Inc., hiring an American bank to manage its customers’ data.