TikTok Picks Oracle Over Microsoft in Landmark US Partnership Deal
TikTok chooses Oracle as its US technology partner, rejecting a buyout offer from Microsoft amid looming White House national security deadlines.
TikTok reaches an agreement to partner with Oracle instead of selling its US operations to Microsoft, marking a major shift in the ongoing tech dispute between the United States and China. This partnership emerges as the Trump administration pressures the video app to address national security concerns regarding its Chinese parent company, ByteDance.
Microsoft confirms that ByteDance rejects its front-running proposal to acquire TikTok's US business, clearing the path for Oracle to step in as the chosen technology partner. While the exact structure of the Oracle agreement remains unclear, a source with direct knowledge states that the proposed deal is designed to satisfy all national security requirements.
The partnership still faces significant hurdles before it becomes final, requiring approval from the US Committee on Foreign Investment in the United States (CFIUS). Additionally, the deal remains vulnerable to broader geopolitical tensions between Washington and Beijing, as either government could potentially intervene to block the agreement.