In a surprise move, Oracle has emerged as the frontrunner to be the US partner for TikTok.
The Trump administration instituted a ban on TikTok that goes into effect mid-September, unless a buyer could be found to take over US operations. Microsoft, partnering with Walmart, emerged as an early prospect before Oracle also threw its name in the mix.
Before a deal could be finalized, however, the Chinese government changed its export rules governing what technologies could be exported. It’s believed the new rules directly impact the algorithm TikTok uses for recommendations and engagement. As a result, potential buyers had to start looking at alternative ways to make a deal happen.
According to CBC, ByteDance has rejected Microsoft’s bid in favor of Oracle. None of the involved parties are commenting, so it remains to be seen what a potential deal looks like.