Microsoft was considered a favorite in negotiations with ByteDance because the company had deep pockets that would help solve security problems that led President Donald Trump to demand that the company be sold if “he” wanted to continue working in the United States. Walmart planned to work with Microsoft on that offer, but the company’s statement made no mention of it. China prevented ByteDance from reaching an agreement when it published new export rules in late August that would prevent TikTok from selling technology that controls its “For You” streaming algorithm, which is addictive and teaches users how to behave over time to offer the most relevant videos. But ByteDance, who had little time to close the deal, eventually discovered that Oracle – who approached Trump for help – was the best partner to address the security issues that have impacted the application since its launch in the United States in 2018. While the purpose of the agreement with Oracle is to continue TikTok’s operations in the U.S., Mr. Trump’s management still did not agree that the new agreement would “comfort” their concerns about user data processing in the United States. ByteDance chose Oracle as a partner to enter into the agreement to save TikTok in the U.S., a source familiar with confirmed conversations with Hollywood Reporter. The decision was made when ByteDance rejected an offer from Microsoft, which was seen as a likely choice for the company in early summer, as it wanted to avoid termination of its use in the popular media amid growing tensions between the United States and China. Trump cited national security concerns to justify the ban, arguing that ByteDance could give the Chinese government access to its users’ data in the US. 6 Trump’s decree banned TicToc in the US if ByteDance did not sell its operations in the US. “We are convinced that our proposal would be useful for TikTok users while protecting national security interests,” the company writes. TikTok arrived in the U.S. in August 2018 after ByteDance acquired a rival site Musical.ly and merged two applications. According to the source, Oracle participates as a technology partner, not a direct buyer from the U.S. company TikTok. Vanessa Pappas, CEO of TikTok in North America, Australia and New Zealand, is the CEO of the company. TikTok denied the accusations and stated that the company keeps data of American service users operating in the USA and Singapore. “It is said that we have made significant changes to ensure the service meets the highest standards of security, privacy, online security and anti-information, and we made these principles clear in our August statement. TikTok and ByteDance representatives declined to comment. It’s unclear whether Oracle TikTok will be interested in this partnership.
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