ByteDance will not sell its US-based TikTok companies to Microsoft, as the Chinese company has selected Oracle as its "reliable technology partner". Now more information is emerging about why the software company from Redmond lost the battle to acquire the Chinese service.
Altough was considered to be able to buy TikTok, Microsoft appears to have angered ByteDance CEO Zhang Yiming when he cited the Chinese service as a threat to better safety which he wants to fix by moving user data to the United States.
A Publication by the Daily Mail reveals that Zhang Yiming did not like Microsoft's approach at all, especially because the company sided with President Trump during the negotiations.
Microsoft said in a statement in August that it was continuing acquisition talks with ByteDance, but agreed to include a U.S. government spokesman in the talks.
"Microsoft will move quickly to continue discussions with TikTok's parent company, ByteDance, in a few weeks. In any case, it will conclude these discussions by September 15, 2020. During this process, Microsoft looks forward to continuing its dialogue with the United States Government, including the President. "Microsoft appreciates the personal involvement of the US government and President Trump as it continues to develop strong security protections for the country."
In an announcement this week, Microsoft confirmed that ByteDance rejected its offer and even revealed that the Chinese company did not respond to Microsoft's requests, especially as it grew pressure from the Americans.
“ByteDance informs us that it will not sell TikTok's US-based businesses to Microsoft. We are confident that our proposal was good for TikTok users while protecting national security interests. To do this, we will make significant changes to ensure that the service meets the highest standards of security, privacy, cyber security and anti- misinformationAnd we made this clear from the beginning in our statement in August. We look forward to seeing how the service evolves in these important areas,” said Microsoft.
President Trump is expected to decide on the partnership between ByteDance and Oracle this week.