ByteDance abandoned the sale of TikTok in the US on Sunday to pursue a partnership with Oracle that it hopes will bypass a US ban while appeasing the Chinese government, people familiar with the matter said.
The Beijing-based company had been in talks to sell the US TikTok business to Oracle or a Microsoft-led consortium after US President Donald Trump ordered the sale last month and threatened to shut down the application of short videos in the United States.
While TikTok is best known for its nondescript dance videos that go viral among teens, US officials have raised concerns that user information could be passed on to the communist government of China. TikTok, which has up to 100 million US users, has said that it will not comply with any requests to share that data with Chinese authorities.
The sale negotiations were interrupted because China updated its export control rules last month to provide input on the transfer of the TikTok algorithm to a foreign buyer. Reuters reported last week that the Chinese government would rather see TikTok shut down in the US than let it be part of a forced sale.
Under the proposal, Oracle will be ByteDance’s technology partner and will take over management of TikTok user data in the US, the sources said. Oracle is also negotiating a stake in TikTok’s operations in the United States, they added.
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