ByteDance abandoned the sale of TikTok in the United States on Sunday in pursuit of a partnership with Oracle Corp that it hopes will spare it a US ban while appeasing China’s government, reported Reuters.
Under the proposed deal, Oracle will be ByteDance’s technology partner and will assume management of TikTok’s US user data, the sources said. Oracle is also negotiating taking a stake in TikTok’s US operations, said Reuters sources familiar with the matter.
It is unclear whether President Trump, who wants a US technology company to own most of TikTok in the United States, will approve the proposed deal. The Committee on Foreign Investment in the United States (CFIUS), a US government panel which reviews deals for potential national security risks, is overseeing the talks between ByteDance and Oracle.
ByteDance plans to argue that CFIUS’ approval two years ago of China Oceanwide Holdings Group’s purchase of US insurer Genworth Financial offers a precedent for the deal structure it is proposing with Oracle, the sources said.