A few hours ago, reports claiming that Microsoft is out of the race for acquiring the US operations of ByteDance owned TikTok started doing rounds on the internet. The statement was given out by the tech giant itself on Sunday, that ByteDance will not be selling TikTok’s US-based operations to Microsoft. The organization stated, “We are confident our proposal would have been good for TikTok’s users, while protecting national security interests.”
As per sources report also claimed that Oracle had won the bid for the same. However, it looks like there could be a different story to tell. CGTN, China’s state broadcaster, claims that sources have revealed that neither Microsoft nor Oracle will acquire TikTok US assets as ByteDance does not intend on selling it to either of these two tech giants.
ByteDance, a firm known for creating video-making apps and services like TikTok and Douyin, would not be parting with its source code to any of the firms situated in the United States. This piece of information comes from CGTN’s sources. Earlier, a few sources told the South China Morning Post that the startup organization is totally against giving away or transferring its self-developed source-code of TikTok. ByteDance has refused to comment on any of these statements.
One needs to see how TikTok’s fate shapes up. Beijing was not present during ByteDance’s rounds of discussions with Washington during the initial phase. However, the Trump government had resorted to completely close down TikTok’s services in the country within 45 days, starting August 6, if ByteDance is unable to seek a local purchaser for its subsidiary. If we seriously go by the 45-day deadline, this means that by September 20, something needs to be finalized to decide TikTok’s fate. This deadline is hardly 5-6 days away from now.
Earlier, during the end of August, there was some revision in the Chinese export rules that would prevent the transfer or the sale of ByteDance’s source code. A change of these policies implies that ByteDance would require special permission from the Chinese government to sell TikTok to an American firm. On the other hand, even the Chinese state media claims that Oracle has not won any bid to acquire TikTok, unlike earlier.
There are also rumors floating around that TikTok’s assets in the US would come at a hefty cost of $50 billion to the acquiring company.
ByteDance has risen to fame due to the kind of algorithms it has been creating to make videos, create memes, develop news content, and many more such similar content throughout its family of apps. While machine learning does most of the job and involves little human intervention, it also helps decode the user’s interests. The more the app content is used, the easier it becomes in predicting the user interests.
TikTok takes into account many of the cultural differences. It explains why and how it conquered the youth from the West. Chairman of ByteDance, Zhang Yiming, stated that the company is focused on getting solutions to the problems it faces globally. He went on to say, “I can assure you that we are developing solutions that will be in the interest of users, creators, partners, and employees.”