TikTok’s owner has chosen Oracle over Microsoft in a proposed sale forced by the Trump administration, according to an AP source.
More to come
This is a breaking update. A previous version of the story can be seen below.
Microsoft says its bid to buy popular video-sharing app TikTok has been rejected, removing a leading suitor for the Chinese-owned app a week before President Donald Trump promises to follow through with a plan to ban it in the U.S.
Microsoft said in a Sunday statement that TikTok’s parent company, Bytedance, “let us know today they would not be selling TikTok’s U.S. operations to Microsoft.”
The Trump administration has threatened to ban TikTok by mid-September and ordered ByteDance to sell its U.S. business, claiming national-security risks due to its Chinese ownership.
The government worries about user data being funnelled to Chinese authorities.
TikTok denies it is a national-security risk and is suing to stop the administration from the threatened ban.
WATCH | China slams U.S. over TikTok sale remarks:
Walmart had planned to partner with Microsoft on the deal. It’s not clear if Walmart is still interested. Oracle, another reported bidder, has declined to comment.
TikTok didn’t immediately return requests for comment Sunday.
Microsoft said Sunday it was “confident our proposal would have been good for TikTok’s users, while protecting national security interests.”
The company said it “would have made significant changes to ensure the service met the highest standards for security, privacy, online safety, and combating disinformation.”