ByteDance Rejects Offers For TikTok's U.S. Operations
There are just days left for Tiktok if it's not sold to an American company, the video sharing APP will be banned in the US. Microsoft was seen as the most likely buyer but TIKTOK Cheney's parent company has now rejected Microsoft's offer. NPR's Bobby Ellen joins us with the latest Bobby Good Morning. Hey, good morning. There was all kinds of talk about this big deal with Microsoft. What happened to it? Yes. So in short, it was turned down by bite dance. If you remember that's tiktok based parent company and you know this really hurt Microsoft Microsoft was really gunning to choir tiktok and it's because it would have been a gold mine of data on young people on one of the world's fastest growing APPS. Microsoft has the money and the technical know how to operate it. But yeah, in a statement Sunday Microsoft says it's offer was And they didn't explain why but they did say their proposal would have protected national security interests, which is how we ended up here in the first place. So. Let's talk about this deadline I mean president trump has said that tiktok poses a national security threat because it's operated out of China. The president is saying that he's GonNa Force Tiktok to to to shut down if they can't sell it to an American operation. So I, mean now that this Microsoft deal has fallen through what happens. Right, so trump says tiktok has no choice but to find a buyer by Tuesday. So tomorrow but an executive order, the president signed talk actually has another five days after that but that's not really much time in the dealmaking world to try to figure this out. Right. So I mean Microsoft having its offer rejected definitely makes it more likely that tick tock. Forever in the US, but it's still could be saved. Right. Rachel is not lost. Others are still in talks with Tiktok do we know who the others are? Yes. So The Wall Street Journal reports that talk is expected to name a software company Oracle as its quote trusted tech partner. Now, what does that mean I have no idea and most people don't know either. Now Chinese State TV has another take out today they're saying that neither Microsoft Oracle will be buying tick tock. It's unclear how definitive that report is but in any case, oracle would a really odd partner here I, mean it sells database products to mostly businesses that has no experience operating social media company. It doesn't even sell any major consumer products analysts. Dan is was among the technology watchers I talked to who is equally as confused the Oracle Technology Partnership, which I think too many. Still a head scratcher is that enough to keep this apple lives. Right. So that's the key question is whatever oracle and Tiktok hammered out enough to satisfy the trump administration so that they will cool their pressure on the APP and let it survive. We just don't know yet. In, China itself has has sort of thrown a wrench into this rate doing some things that are delaying talks. That's right. Yeah. So in the middle of these talks, China passed a new rule restricting how a foreign buyer say an American company like Microsoft would. Could could take on a Chinese algorithm and Tiktok is popular because it has this amazing algorithm right I mean it's really seen as kind of the secret sauce of TIKTOK. It's what makes it very personalized. It's what makes you know videos just go viral really really fast. So can talk be sold without its treasured algorithm would tick dog even be Tiktok without i. mean these are really big questions right now and just to end just to step back how exceptional is the situation now with president trump putting this kind of pressure on a private company. Yeah I mean unprecedented as you know, Rachel's term, we hear thrown around a lot in the trump era and I don't think it would be a stretch to use it here I mean the president using the power of his office to force in overseas company to sell its business in the US, is very, very unusual but still that's the situation Tiktok is now facing. NPR's Bobby Allen. Thank you. Thank you Rachel.