Chinese tech company BytePop has reportedly decided to reach an agreement with US tech company Oracle for its TikTok (Jitterbug International) business in the US, hoping to avoid a restriction set by US President Donald Trump that would prevent TikTok from providing services in the US after September 15.
Several US media outlets on Sunday (September 13, 2020) quoted sources as saying that Byte’s partnership with Oracle does not appear to include the sale of the entire TikTok business in the US, but rather a deal for Oracle to manage TikTok’s US-acquired user data. It’s unclear whether the deal meets the White House’s previous requirement that TikTok must sell its U.S. business or cease operations.
Trump signed an executive order on Aug. 6 finding that TikTok poses a threat to U.S. national security and barring Americans and businesses from doing business with TikTok and its Chinese parent company, Byte Jumping, until 45 days later, which is Sept. 15. Another executive order signed by the president on Aug. 14 requires ByteTok to divest itself of TikTok’s U.S. assets within 90 days.
Microsoft said in a statement Sunday that Byte Jump has informed Microsoft that it will not sell TikTok’s U.S. business to Microsoft Corp.
Last month, two U.S. investment firms with significant stakes in Byte Jump had actively pushed for Oracle to replace Microsoft as the eventual buyer of TikTok. The Wall Street Journal said executives at at least one of the U.S. investment firms recently donated money to Trump’s re-election campaign, while Oracle co-founder Larry Ellison also hosted a political fundraiser for the president’s re-election at his home earlier this year.
The Chinese government has opposed a U.S. deadline for TikTok to shut down or sell its U.S. operations. Last Friday, sources said Beijing would rather see TikTok shut down its U.S. operations than see it cave in to pressure from Washington to force it to sell.
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