The owner of TikTok has chosen Oracle over Microsoft as its preferred suitor to buy the popular video-sharing app, according to a source familiar with the deal.
Microsoft announced Sunday that its bid to buy TikTok was 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 U.S. government worries about user data being funnelled to Chinese authorities.
WATCH | China slams U.S. over TikTok sale remarks:
TikTok denies it is a national-security risk and is suing to stop the administration from the threatened ban.
Oracle and TikTok declined to comment Sunday.