When popular Chinese-owned app TikTok was banned in the US, the decision to put the app up for sale took center stage. Since then, numerous US companies have come forward to make their bid.
According to multiple news reports, Oracle have succeeded in purchasing the app on Sunday . With this development, control of its U.S. operations have been transferred to the tech giant.
News of Oracle’s buy out broke just a few minutes after a top contender for the purchase, Microsoft, revealed that ByteDance, the parent company of TikTok had informed it that the company’s bid had been turned down.
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The bidding proceedings for Microsoft which was supported by the U.S government came to a halt after the company made the announcement.
The Trump administration has raised concerns on national security about the app and its owner over its alleged connections to China’s government, and it had dimmed it fit to ban the social video app allowing it to operate only if sold to a U.S. buyer
Microsoft’s statement read “ByteDance let us know today they would not be selling TikTok’s US operations to Microsoft.”
The company added: “We are confident our proposal would have been good for TikTok’s users, while protecting national security interests. 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.”
TikTok however is not letting this go easily. It has pledged to sue the Trump administration over its ban from operating in the U.S. Microsoft announced in early August that it was moving forward with plans to purchase the app, while pledging a security review.
“Hundreds of millions of people come to TikTok for entertainment and connection, including our community of creators and artists who are building livelihoods from the platform,” said a TikTok spokesperson in late July.
“We’re motivated by their passion and creativity, and committed to protecting their privacy and safety as we continue working to bring joy to families and meaningful careers to those who create on our platform.”
Due to data privacy concerns, some lawmakers on Capitol Hill have urged the Justice Department to open an investigation into TikTok.
“As tens of millions of Americans turn to Zoom and TikTok during the COVID-19 pandemic, few know that the privacy of their data and their freedom of expression is under threat due to the relationship of these companies to the Chinese government,” Sens. Josh Hawley (R-Mo.) and Richard Blumenthal (D-Conn.) wrote to the agency in July.
“Of particular concern, both Zoom and TikTok have sought to conceal and distract from their meaningful ties to China, holding themselves out as American companies.”
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