Computer software company Oracle has won the tender for TikTok's US operations, a source told the Wall Street Journal.
It is a week before President Donald Trump promises to implement a plan to ban the Chinese app in the US.
A person familiar with the matter informed the WSJ that Oracle has been announced as TikTok's "trusted technology partner" in America. They added that it is unlikely to be a full sale.
ByteDance must be approved by the US and Chinese governments.
Computer software company Oracle has won the tender for TikTok's US operations, a source told the Wall Street Journal
It is a week before President Donald Trump promises to implement a plan to ban the Chinese app in the US
US officials have criticized the app's security and privacy, pointing out that user data may be shared with Beijing. TikTok has announced that it will not comply with a request to pass on user data to the Chinese authorities.
Oracle will process TikTok's US user data, the source added.
The deal will be structured as a restructuring rather than a sale, with no announcement of how much of TikTok's U.S. business will continue to be owned by ByteDance and its investors.
It was unclear whether General Atlantic and Sequoia Capital, both of whom had previously reported driving the Oracle deal, were part of that deal.
The Trump administration has threatened to ban TikTok by mid-September and ordered ByteDance to sell its U.S. business, asserting national security risks over its Chinese property.
Microsoft announced on Sunday that its offer to buy the popular video sharing app had been rejected.
Microsoft said in a statement on Sunday that TikTok's parent company, Bytedance, "would let us know today that they would not sell TikTok's US operations to Microsoft."
"We are confident that our proposal would have been good for TikTok users while protecting national security interests," the company said in a statement.
To achieve this, we would have made significant changes to ensure that the service met the highest standards of security, privacy, online safety, and the fight against disinformation, and we clarified those principles in our August statement. We look forward to seeing how service develops in these important areas. & # 39;
A person familiar with the matter announced to the WSJ that Oracle has been announced as TikTok's "Trusted Technology Partner" in America
Microsoft said it was "confident that our proposal would have been good for TikTok users while protecting national security interests".
The company said it had "made significant changes to ensure the service meets the highest standards for security, privacy, online safety and the fight against disinformation."
It's not clear whether President Trump, who wants a US tech company to own most of TikTok in the US, and the US Foreign Investment Committee will approve the proposed Oracle deal.
The government fears that user data will be passed on to the Chinese authorities.
TikTok denies it is a national security risk and is suing to deter administration from the looming ban.
Walmart had planned to work with Microsoft on the deal.
TikTok didn't immediately return requests for comments on Sunday.
Reuters reported Friday that Beijing is opposed to a forced sale of TikTok's US operations and would prefer to shut down the short video app in the US, three people with direct knowledge of the matter said.
Chinese officials believe a forced sale would make both ByteDance and China look weak amid pressure from Washington, the sources said on condition of anonymity.
ByteDance said in a statement to Reuters that the Chinese government has never proposed to shut down TikTok in the US or any other market.
Two of the sources said China is ready to use the August 28th changes to a technology export list to delay an agreement reached by ByteDance should it be necessary.
They revised a list of technologies that would have to be approved by the Chinese government before export. Experts said that TikTok's recommendation algorithm would fall under that list.
When asked about Trump and TikTok, Chinese State Department spokesman Zhao Lijian said at a regular press conference that the US is abusing the concept of national security and calling on it to stop suppressing foreign companies.
Reuters reported that TikTok's potential buyers were discussing four ways to structure an acquisition of ByteDance.
Within this, ByteDance could continue to sell TikTok's U.S. assets without approval from the Chinese Department of Commerce by selling them without using any key algorithms.