TikTok may sell the app to Microsoft or Oracle. What do the different deals mean?

TikTok may sell the app to Microsoft or Oracle. What do the different deals mean?

TikTok has reportedly chosen a bidder for its U.S., New Zealand and Australian business, and the deal could be announced Tuesday.



a close up of a sign: This Tuesday, Feb. 25, 2020 photo shows the icon for TikTok taken in New York. From the perspective of teens flooding onto TikTok, the Chinese-owned online video app is a major new outlet for self-expression, one proudly home to the silly, the loud and the weird. To others, though, the service is an unnerving black box that could be sharing information with the Chinese government, facilitating espionage, or just promoting videos and songs some parents consider lewd. (AP Photo)


© Associated Press
This Tuesday, Feb. 25, 2020 photo shows the icon for TikTok taken in New York. From the perspective of teens flooding onto TikTok, the Chinese-owned online video app is a major new outlet for self-expression, one proudly home to the silly, the loud and the weird. To others, though, the service is an unnerving black box that could be sharing information with the Chinese government, facilitating espionage, or just promoting videos and songs some parents consider lewd. (AP Photo)

  • The top contender remains Microsoft (who has linked up with Walmart) and Oracle.
  • The sale price could be between $20 billion and $30 billion.

However, the deal could hit a snag because of the Chinese government, according to CNBC.

  • China updated its technology export list to includ artificial intelligence technology, which is used by TikTok.
  • ByteDance — the parent company of TikTok — said it would need a license from the Chinese government so it could sell the company, per CNBC.

Which way is TikTok leaning?

According to The New York Times, sources close to the deal are unsure which bidder will secure the deal. And another bid could still work its way into the negotiations.

  • A Microsoft and Walmart deal would turn TikTok into something of an e-commerce app, which would allow people to sell and share products easily.
  • An Oracle-owned TikTok would allow the software company to “use TikTok’s data about social interactions to benefit its cloud, data and advertising businesses,” according to The New York Times.
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