ByteDance abandons sale of TikTok business to Microsoft and reaches cooperation with Oracle

Reuters reported that ByteDance has abandoned the sale of TikTok business to Microsoft and instead sought a partnership with Oracle.

Sources revealed that under the proposed transaction, Oracle will become ByteDance's technology partner and will be responsible for managing TikTok's user data in the United States. Oracle is also negotiating to acquire a stake in TikTok's US business.

The sources also said that some of ByteDance's investors, including General Atlantic and Sequoia, will also obtain minority stakes in TikTok's U.S. business.

Microsoft said on Sunday that ByteDance informed it it would not sell TikTok's U.S. operations.

Retail giant Walmart said it remains interested in investing in TikTok and will engage in further discussions with ByteDance's leadership and other interested parties.

U.S. President Trump signed two executive orders against ByteDance last month. The first ban prohibits U.S. companies from doing business with ByteDance and its subsidiaries from September 20. The second ban, based on U.S. security concerns, requires ByteDance to sell its TikTok business by November 12.

If Trump agrees to ByteDance's proposed deal with Oracle, he would have to do a 180-degree turn and revoke his order specifically calling for the divestiture of TikTok.

According to a national survey conducted by Reuters last month, as many as 40% of Americans support Trump's executive order. Among Trump's Republicans, nearly 70% support Trump.