Exclusive: China would rather see TikTok U.S. close than a forced sale

[obj 705A]

(Reuters) - Beijing opposes a forced sale of TikTok's U.S. operations by its Chinese owner ByteDance, and would prefer to see the short video app shut down in the United States, three people with direct knowledge of the matter said on Friday.

ByteDance has been in talks to sell TikTok's U.S. business to potential buyers including Microsoft (MSFT.O) and Oracle (ORCL.N) since U.S. President Donald Trump threatened last month to ban the service if it was not sold.

Trump has given ByteDance a deadline of mid September to finalise a deal.

However, Chinese officials believe a forced sale would make both ByteDance and China appear weak in the face of pressure from Washington, the sources said, speaking on condition of anonymity given the sensitivity of the situation.

ByteDance said in a statement to Reuters that the Chinese government had never suggested to it that it should shut down TikTok in the United States or in any other markets.

Two of the sources said China was willing to use revisions it made to a technology exports list on Aug. 28 to delay any deal reached by ByteDance, if it had to.

Reuters has reported that TikTok’s prospective buyers were discussing four ways to structure an acquisition from ByteDance.

Within these, ByteDance could still push ahead with a sale of TikTok's U.S. assets without approval from China's commerce ministry by selling them without key algorithms.

Beijing has said it firmly opposes Trump's executive orders and on Aug. 28 moved to give itself a say in the process, revising a list of technologies that will need Chinese government approval before they are exported. Experts said TikTok's recommendation algorithm would fall under this list.

Chinese regulators said last week the rules were not targeted at specific companies but they reaffirmed their right to enforce them.

Exclusive: China would rather see TikTok U.S. close than a forced sale - sources

Beijing opposes a forced sale of TikTok's U.S. operations by its Chinese owner ByteDance, and would prefer to see the short video app shut down in the United States, three people with direct knowledge of the matter said on Friday.

www.reuters.com

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As is the case with any news that cites anonymous sources take it with a pinch of salt.

 

[Hamartia Antidote]

(Reuters) - Beijing opposes a forced sale of TikTok's U.S. operations by its Chinese owner ByteDance, and would prefer to see the short video app shut down in the United States, three people with direct knowledge of the matter said on Friday.

ByteDance has been in talks to sell TikTok's U.S. business to potential buyers including Microsoft (MSFT.O) and Oracle (ORCL.N) since U.S. President Donald Trump threatened last month to ban the service if it was not sold.

Trump has given ByteDance a deadline of mid September to finalise a deal.

However, Chinese officials believe a forced sale would make both ByteDance and China appear weak in the face of pressure from Washington, the sources said, speaking on condition of anonymity given the sensitivity of the situation.

ByteDance said in a statement to Reuters that the Chinese government had never suggested to it that it should shut down TikTok in the United States or in any other markets.

Two of the sources said China was willing to use revisions it made to a technology exports list on Aug. 28 to delay any deal reached by ByteDance, if it had to.

Reuters has reported that TikTok’s prospective buyers were discussing four ways to structure an acquisition from ByteDance.

Within these, ByteDance could still push ahead with a sale of TikTok's U.S. assets without approval from China's commerce ministry by selling them without key algorithms.

Beijing has said it firmly opposes Trump's executive orders and on Aug. 28 moved to give itself a say in the process, revising a list of technologies that will need Chinese government approval before they are exported. Experts said TikTok's recommendation algorithm would fall under this list.

Chinese regulators said last week the rules were not targeted at specific companies but they reaffirmed their right to enforce them.

Exclusive: China would rather see TikTok U.S. close than a forced sale - sources

Beijing opposes a forced sale of TikTok's U.S. operations by its Chinese owner ByteDance, and would prefer to see the short video app shut down in the United States, three people with direct knowledge of the matter said on Friday.

www.reuters.com

_______________________________
As is the case with any news that cites anonymous sources take it with a pinch of salt.

Well that was September 11.

This was announced today

Oracle Chosen as Winner in TikTok Sale

Here’s what you need to know about the impact of Covid-19 to navigate the markets today.

www.barrons.com

Oracle Chosen as Winner in TikTok Sale

 

[Leishangthem]

the userbaase alone is worth the billions,china should just ban sales of tiktok.

 

[obj 705A]

TikTok has chosen Oracle as U.S. ‘technology partner,’ rejecting Microsoft’s bid

Oracle emerged late Sunday as the surprise victor in wooing short-term video app TikTok, which is proposing a compromise to the Trump administration that would allow it to potentially keep its current ownership, according to people familiar with the discussions.

The people, who spoke on the condition of anonymity to discuss the deliberations freely, said that TikTok recently put forward a proposal to the U.S. government that would allow its Chinese parent company, ByteDance, to retain ownership but outsource cloud management of the data. One of the people said that TikTok chose Oracle as its U.S. “technology partner” Sunday afternoon and that the companies brokered the deal in an attempt to satisfy regulator concerns.

But a former U.S. official said that while such an approach might address some of the security concerns, “it’s well short of a U.S. company taking over the asset and the algorithm, and politically, it would be a massive climb-down from what the president said he was going to accomplish with this.”

“It’s not a climb-down,” the administration official said. Any deal would have to be approved by an interagency group tasked with ensuring that national security concerns are mitigated, the official said. “All the details are not out,” the official said.

President Trump previously issued an order that would ban the app in the United States beginning Sept. 20. He followed that with a second order that would essentially require parent company ByteDance to divest from its operations in the United States.

https://www.washingtonpost.com/technology/2020/09/13/microsoft-tiktok-bid-rejected/

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obviously this has yet to get approval from the governments in the US and China, I have a feeling even Trump doesn't like this proposal because the app would still be owned by a Chinese company, even the algorithim in the US would still be Chinese owned.
Oracle would handle just the "cloud management" whatever the F that means.

 

[Figaro]

Oracle would handle just the "cloud management" whatever the F that means.

This means all the user data will be directly handled by Oracle instead of Bytedance. This is the crux of the argument against Tik Tok, which basically states that since user data is in the hands of Bytedance, it could potentially be accessed by the Chinese government. Previously, all Tik Tok user data was stored in servers in Singapore and Virginia but now it will be stored by some Oracle server.

 

[hirobo2]

There's only one Asian country dare stand up to US this way. Other countries like Japan would quickly give in and kowtow. My mom once said, the only reason she looks up to China is coz it's the only Asian country never been "fooked" by the US...

 

[cloud4000]

Not sell TikTok and leave billions on the table and for what, spite? Take the money.

 

[52051]

Well that was September 11.

This was announced today

Oracle Chosen as Winner in TikTok Sale

Here’s what you need to know about the impact of Covid-19 to navigate the markets today.

www.barrons.com

Oracle Chosen as Winner in TikTok Sale

Oracle don't buy anything from Tiktok, it is just an data agreement contract, where TikTok store its data on oracle servers.

Just like the deal Apple signed with China.

So basically your dotard president folded again

 

[Feng Leng]

President Trump won't approve the TikTok deal with Oracle.

So in the end, Americans will lose access to TikTok. LOL at American losers