(TheLibertyRevolution.com)- Software giant Microsoft was beaten in its bid to buy Chinese social media app Tik Tok, with Oracle making an agreement with the Chinese owner of the platform to take over U.S. operations. Sources familiar with the deal hashed out between the two companies suggested that it is more like a “partnership” rather than a simple acquisition.
According to the Wall Street Journal, software company Oracle will become the “trusted tech partner” of the app in the United States and won’t involve a direct sale. The agreement, however, has not yet been approved by President Trump and the Committee on Foreign Investment in the United States.
President Trump has already stated that he wants to see the app sold to an American company or it will be banned from the United States, citing security concerns.
One source close to the deal, however, told the Wall Street Journal that the deal satisfies all the concerns raised by the federal government relating to data security.
American software companies have been negotiating with TikTok owner ByteDance for months, ever since President Trump set a deadline for the sale of the app. Tensions between China and the United States have escalated also not just as a result of the outbreak of the Chinese coronavirus but because of questions raised by about China’s efforts to infiltrate foreign networks and use infrastructure deals to spy on data coming from computer devices in America.
New export restrictions were also introduced by the Chinese government at the end of August which related to the artificial intelligence software and tech used by TikTok.
As part of the proposed deal, investors in ByteDance, including American investment firms General Atlantic and Sequoia Capital, will receive stakes in the app too.
Software giant Microsoft was originally considered the frontrunner in the deal, with some speculating that the software company was preparing to spend billions on an out-right acquisition.
Microsoft confirmed that they were notified about the decision to seek a deal with Oracle, stating, “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.”
Now it’s in President Trump’s hands.