Oracle has beaten out Microsoft in the bidding for the U.S. operations of TikTok, the short video service owned by China-based tech giant, ByteDance.
Microsoft (ticker: MSFT) issued a statement late Sunday afternoon confirming that ByteDance did not accept its offer. “ByteDance let us know today they would not be selling TikTok’s US operations to Microsoft,” the company said. “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. We look forward to seeing how the service evolves in these important areas.”
Citing a person familiar with the matter, The Wall Street Journal is reporting that Oracle (ORCL) will be announced as TikTok’s “trusted tech partner” in the U.S. and that the deal will not be structured as an outright sale.
Microsoft had partnered with Walmart (WMT) on its bid, while Oracle reportedly has been working with the investment firms General Atlantic and Sequoia Capital its own offer. President Donald Trump has threatened to shut down TikTok’s operations in the U.S. over security concerns unless ByteDance sold the unit to an American buyer.
In a surprising statement late Sunday night, Microsoft partner Walmart made it clear that it had not given up on potential involvement in a TikTok transaction. “Walmart continues to have an interest in a TikTok investment and continues discussions with ByteDance leadership and other interested parties,” the retailer said. “We know that any approved deal must satisfy all regulatory and national security concerns.”
Oracle could not immediately be reached for comment. TikTok declined to comment.
Oracle stock has gained 8.8% in premarket trading, while Microsoft has declined 0.1%, and Walmart has fallen 0.5%.