The Beijing-based tech giant is expected to name Oracle as its preferred partner to keep TikTok operating in the U.S.
ByteDance has rejected Microsoft's bid for the U.S. operations of TikTok, a move that leaves Oracle as the likely partner for a deal to keep the popular social media app operating amid increased tensions between the U.S. and China.
"We are confident our proposal would have been good for TikTok's users, while protecting national security interests," Microsoft wrote in a statement on its corporate blog. "To do this, we would have made significant changes to ensure the service met the highest standards for security, privacy, online safety, and combatting disinformation, and we made these principles clear in our August statement. We look forward to seeing how the service evolves in these important areas."
Microsoft was seen as the favorite to move forward in negotiations with ByteDance given its deep pockets, which would have helped it address the security concerns that led President Donald Trump to require the business to be sold if it wanted to continue to operate in the U.S. Walmart had planned to team up with Microsoft on the bid but was not mentioned in the company's statement.