Microsoft says it’s not acquiring parts of TikTok’s operations, after its bid was rejected by TikTok owner ByteDance. After weeks of talks and very public back and forths involving the Trump administration, Microsoft ultimately failed in its attempts to acquire TikTok.
“ByteDance let us know today they would not be selling TikTok’s US operations to Microsoft,” says Microsoft in a statement. “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.”
Microsoft originally confirmed last month that it was pursuing a dealto buy TikTok’s operations in the US, Australia, Canada, and New Zealand. Reports also suggestedMicrosoft might be considering buyingall of TikTok’s global operations, with theFinancial Timessuggesting talks around this particular deal were at the “preliminary” stage.
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Microsoft’s failed bid leaves the door open for Oracle as a potential buyer. Reports last month suggested Oracle was in the running for a TikTok acquisition, and earlier today Axios reported that Larry Ellison’s enterprise software gianthad leapfrogged Microsoft for the deal.
Any potential deal with Oracle isn’t without complications, though. President Trump initially threatened a September 15th deadline for a TikTok sale, before setting November 12th as the deadline, with the threat of a potential ban. That’s led to TikTok suing the Trump administrationover an alleged lack of due process, and the potential of China blocking a deal or allowing it to be sold without its key algorithm.
It’s not clear exactly what will happen to TikTok in the US now that Microsoft has been unsuccessful in its bid. Oracle looks like the most likely candidate, and it may serve as more of a cloud services provider rather than a parent company with direct control. Nothing has been simple with this ongoing TikTok saga, so it’s reasonable to expect some more twists and turns in the coming days and weeks.
As an expert in technology and business, I've closely followed the developments in the tech industry, including the high-profile attempted acquisition of TikTok by Microsoft. My expertise in this domain is demonstrated by a deep understanding of the key players involved, the intricacies of business negotiations, and the potential impact on national security and user privacy.
In the given article, Microsoft's failed bid to acquire parts of TikTok's operations is a significant event that unfolded after weeks of negotiations and public discussions. Microsoft expressed confidence that its proposal would have been beneficial for TikTok's users while addressing national security concerns. The company emphasized its commitment to implementing changes to ensure the highest standards of security, privacy, online safety, and the fight against disinformation.
Microsoft had initially confirmed its pursuit of a deal to buy TikTok's operations in the US, Australia, Canada, and New Zealand. There were also reports suggesting that Microsoft might be considering the acquisition of all global operations of TikTok. However, the bid was ultimately rejected by ByteDance, TikTok's owner.
The article mentions that Oracle emerges as a potential buyer following Microsoft's failure. Reports suggest that Oracle has surpassed Microsoft in the race for a TikTok acquisition. However, any potential deal with Oracle faces complications. President Trump had set deadlines for TikTok's sale, leading to legal challenges from TikTok, alleging a lack of due process. Additionally, there is uncertainty about China's stance on the deal, including the possibility of blocking it or allowing the sale without TikTok's key algorithm.
Looking ahead, the fate of TikTok in the US remains uncertain, and Oracle seems to be the most likely candidate for acquisition. However, the nature of the deal is unclear, with suggestions that Oracle may serve more as a cloud services provider than a direct parent company with control. The article concludes by acknowledging the complexity of the ongoing TikTok saga and anticipates further twists and turns in the coming days and weeks.
FAQs
In August 2020, Microsoft had a strange, short-lived opportunity to buy TikTok, after parent company ByteDance was coerced into selling its U.S. operations by the Trump administration. Microsoft's deal to buy TikTok quite quickly fell through. Oracle was chosen instead, however that never happened either.
How much was Microsoft willing to pay for TikTok? ›
Recent price estimates for TikTok's U.S. operations range from $40 billion to $100 billion. Microsoft's balance of cash and short-term investments stood at just under $100 billion as of December 2022.
Who almost bought TikTok? ›
Microsoft chief executive Satya Nadella has described the proposed deal to buy TikTok, under pressure from the Trump White House, as "the strangest thing". In August 2020, as President Trump threatened to ban TikTok, the Chinese video app's owner ByteDance approached Microsoft as a possible partner.
Will Oracle buy TikTok? ›
The deal ultimately fell through as Oracle was selected to potentially oversee TikTok's U.S. operations and user data. NBC News previously reported that Oracle would have operational control over the app in the U.S. while ByteDance would retain majority ownership over TikTok.
Is TikTok owned by Microsoft now? ›
Microsoft in August 2020 began talks on the proposed acquisition but the deal collapsed by September. Trump's divestment push ended by the time he left office in January and no potential suitor ending up acquiring TikTok.
Was TikTok sold to Microsoft? ›
In 2020, then-President Donald Trump negotiated an agreement over national security concerns that would have seen a major stake in TikTok shared between Walmart and Oracle. But the sides failed to complete a deal. At the time, Microsoft also fell short in an attempt to acquire TikTok.
How much does TikTok pay you for $1 million? ›
How much money does one million TikTok views make? A creator who received one million views could make between $20 to $40. How Much Does TikTok Creator Fund Pay? The Creator Fund has a combination of factors to determine each payment.
What companies could buy TikTok? ›
Not only because it's still unprofitable, but also because of the migraine headaches inherent in owning and operating a popular social media company. Look ahead: The most logical buyers for TikTok are ByteDance's non-Chinese investors, including General Atlantic, Sequoia Capital, and Susquehanna International Group.
How much is US TikTok worth? ›
TikTok US: $16bn of 2023 revenues and a possible $100bn valuation - Music Ally.
Can Google buy TikTok? ›
Google parent company Alphabet and Meta are some of the only companies capable of single-handedly paying TikTok's price tag at its current $100 billion valuation. Google CEO Sundar Pichar previously ruled out buying TikTok in 2020 when former President Donald Trump was trying to ban the app.
TikTok said 60% of ByteDance is owned by global investors, including U.S.-based investors, 20% by its Chinese co-founders and 20% by its employees, including thousands in the U.S. The company's vice president has attested to that structure in a letter to Congress.
Who is the main owner of TikTok? ›
Zhang Yiming (Chinese: 张一鸣; born April 1, 1983) is a Chinese internet entrepreneur. He founded ByteDance in 2012, developed the news aggregator Toutiao and the video sharing platform Douyin (internationally known as TikTok).
What platform will replace TikTok? ›
Triller. Originally founded in 2015 as a video-editing app, Triller quickly gained traction as a viable TikTok alternative. With millions of downloads and A-list names using the platform, Triller is establishing itself as a powerful social media platform.
How many US citizens use TikTok? ›
Roughly 170 million Americans use TikTok. That's half the population of the United States. TikTok, which officially landed in the United States in 2018, was the most downloaded app in the country, and the world, in 2020, 2021 and 2022.
What platform does ByteDance own? ›
ByteDance Ltd. AVIC Plaza, one of the office buildings of ByteDance in Beijing. Founded by Zhang Yiming, Liang Rubo and a team of others in 2012, ByteDance developed the video-sharing apps TikTok and Douyin. The company is also the developer of the news platform Toutiao.
Why is TikTok being forced to sell? ›
For years, lawmakers and administration officials have expressed concerns that Chinese authorities could force ByteDance to hand over U.S. user data, or influence Americans by suppressing or promoting certain content on TikTok.
Why did states ban TikTok? ›
Throughout the United States, the social media service TikTok has faced partial and attempted bans. The platform, owned by Chinese company ByteDance, sparked concerns over potential user data collection and influence operations by the Chinese government.
Why is TikTok not available in the US? ›
But the TikTok ban reflects widespread concerns from lawmakers about China. Members of both parties, along with intelligence officials, have worried that Chinese authorities could force ByteDance to hand over American user data or direct the company to suppress or boost TikTok content favorable to its interests.
