The owner of TikTok has chosen Oracle over Microsoft as the American tech partner that could help keep the popular video-sharing app running in the US, according to a person familiar with the deal who was not authorized to speak publicly about it.
President Donald Trump’s administration has threatened to ban TikTok by Sept. 20 and ordered owner ByteDance to sell its US business, claiming national security risks due to its Chinese ownership. The government worries about user data being funneled to Chinese authorities. TikTok denies it is a national security risk and is suing to stop the administration from enacting the threatened ban.
TikTok and the White House declined to comment Sunday. Oracle didn’t return a request for comment but has previously declined comment.
Walmart, which had planned to partner with Microsoft on the acquisition, said Sunday it “continues to have an interest in a TikTok investment” and is talking about it with ByteDance and other parties.
Much remains unclear about the proposed deal with Oracle, including whether it will only cover TikTok’s US business, and, if so, how it will be split from the rest of TikTok’s social media platform, which is popular worldwide. ByteDance also owns a similar video app, Douyin, for the Chinese market.
Any deal must still be reviewed by the Committee on Foreign Investment in the United States, known as CFIUS, a US government group chaired by the Treasury Secretary that studies mergers for national security reasons. The president can approve or deny a transaction recommended by the panel, though Trump has already voiced support for Oracle as a “great company” that could handle the acquisition.
Microsoft said in a Sunday statement that ByteDance “let us know today they would not be selling TikTok’s US operations to Microsoft.”
Microsoft added it was “confident our proposal would have been good for TikTok’s users, while protecting national security interests.” The company said it “would have made significant changes to ensure the service met the highest standards for security, privacy, online safety, and combating disinformation.”
TikTok, which says it has 100 million US users and about 700 million globally, is known for its fun, goofy videos of dancing, lip-syncing, pranks and jokes. It’s recently become home to more political content such as the comedian Sarah Cooper, who drew a large audience by lip-syncing Trump’s often-disjointed statements from public appearances.
But the app has also raised concerns because of its Chinese ownership. The White House has cracked down on a range of Chinese businesses, including telecom equipment makers Huawei and ZTE and messaging app WeChat, over worries that they would enable Chinese authorities to access US user data. Republican and Democratic lawmakers have raised concerns about censorship and children’s privacy.
TikTok denies that it has shared user data with the Chinese government or that it would do so if asked. The company says it has not censored videos at the request of Chinese authorities and insists it is not a national-security threat.
TikTok has sued to stop the ban, but not the sale order. The negotiations have been complicated by several factors, including Trump’s repeated demands that the US government should get a “cut” of any deal, a stipulation and role for the president that experts say is unprecedented.
In addition, the Chinese government in late August unveiled new regulations that restrict exports of technology, likely including the artificial intelligence system TikTok uses to choose which videos to spool up to its users. That means ByteDance would have to obtain a license from China to export such technology to a foreign company.
Whether the Oracle-TikTok deal will allow the sidestepping of Chinese export restrictions depends on which entity retains control of TikTok in the US, said Paul Haswell, a Hong Kong-based partner at law firm Pinsent Masons.
The deal had come together rapidly after the administration ramped up its threats against TikTok this summer, despite TikTok’s efforts to put distance between its app and its Chinese ownership. It installed former Disney executive Kevin Mayer as its American CEO, but he resigned in August after just a few months on the job, saying the “political environment has sharply changed.”
TikTok owner picks Oracle over Microsoft as US tech partner
https://arab.news/y72u3
TikTok owner picks Oracle over Microsoft as US tech partner
- President Donald Trump’s administration has threatened to ban TikTok by Sept. 20
- Much remains unclear about the proposed deal with Oracle
Six vital sectors drawing US investors to Saudi Arabia
RIYADH: Six vital sectors are drawing US investors, including entrepreneurs and small businesses, to Saudi markets as the Kingdom continues to develop its regulatory framework and foster innovation, Deborah Lehr, interim CEO of the Meridian International Center, said in an interview with Al-Eqtisadiah.
Lehr, who is heading a trade and investment delegation to Saudi Arabia in her capacity as an economic advisor affiliated with the White House, stated that the six sectors include hospitality, luxury goods, and tourism, as well as culture, technology, and others.
She noted that Saudi Arabia has significantly eased the process for foreign companies to establish a presence, a critical factor for small and medium-sized enterprises that may not yet have the scale to expand, making the Kingdom an attractive market for both large and innovative small companies.
Following the success of the Saudi Crown Prince’s recent visit to Washington, she said, Meridian organized a US trade delegation to explore tangible and growing opportunities for US businesses in Saudi Arabia.
Translating Vision 2030 priorities into real partnerships
The delegation, which included representatives from Delta, Intel, Pernod Ricard, and Basilinna, among others, met a wide range of government officials, private-sector leaders, and entrepreneurs to explore how US companies can participate in Saudi market growth.
According to Lehr, discussions were practical and forward-looking, focusing on translating Vision 2030 priorities into real business partnerships.
She highlighted that most of the companies in the delegation were large enterprises operating across various sectors, underscoring the diversity of businesses active in Saudi Arabia.
She pointed out that these companies joined the mission because they see the potential to scale their operations in Saudi Arabia — whether by increasing flight routes, enhancing airport security, offering advisory services to firms entering the Saudi or US markets, or exploring opportunities in the beverage sector.
Relationship increasingly taking economic dimension
Lehr hinted to the Saudi minister of investment that the US-Saudi relationship is also increasingly taking on an economic dimension.
She noted that bilateral trade stands at around $40 billion, compared with Saudi-China trade of approximately $110 billion, highlighting untapped growth potential between the two countries, especially as diplomatic and political ties continue to strengthen.
She said the reforms present valuable opportunities for US companies across multiple sectors, including advanced manufacturing, technology and logistics, as well as aviation, tourism and culture, alongside a wide range of services.
With the regulatory environment being modernized and business stability increasing, the scope of US investment is set to expand further. More importantly, she added, the greater the engagement of companies, the stronger and more resilient the bilateral relationship will become in the years ahead.
She emphasized that Saudi Arabia has undergone deep social and economic transformations, including increased female participation in the workforce and entrepreneurship, while emerging as a cultural hub with a thriving arts scene and new platforms for creative expression.
Lehr further said that the world will witness growing global interest from companies and institutions eager to be part of Saudi Arabia’s remarkable transformation, amid increasing openness and a willingness to share its history, culture, and ambitions with the world.
Saudi agenda offers tangible opportunities
Lehr highlighted that during her visit, she focused on three key economic priorities. The first is Saudi Arabia’s strategic shift of capital from the oil and gas sector toward technology and innovation, a move that signifies not only economic diversification but also the Kingdom’s emergence as a globally competitive player.
Second, the Kingdom’s reform agenda has provided tangible opportunities for foreign companies, reflecting real changes that facilitate international participation in Saudi growth.
The third point she focused on was that the strong geopolitical and economic ties between the US and Saudi Arabia have bolstered investor confidence. As the Kingdom strengthens its global role and deepens relationships with partners such as the US, its attractiveness for long-term foreign direct investment continues to grow.
She noted that sectors such as artificial intelligence, gaming and entertainment, advanced manufacturing, and the technology ecosystem are areas in which the US has strong competitive advantages, at a time when US firms are seeking new markets that offer stability and long-term potential.
Giga-projects in Saudi Arabia, including AlUla and NEOM, have attracted global attention and highlighted emerging opportunities across the country.
These projects demonstrate the Kingdom’s ambitious vision and its creation of entirely new sectors rather than merely expanding existing ones.
