Oracle wins TikTok over Microsoft in Trump-urged bid

owner of TikTok has chosen Oracle over Microsoft as American tech partner that could help keep popular video-sharing app running in U.S.

Dan Ives, Managing Director at Wedbush Securities, said deal will help Oracle from an investor perspective and allow TikTok to continue operating in US.

Microsoft anunced Sunday that its bid to acquire TikTok's U.S. operations was rejected, removing tech giant from running a week before President Donald Trump promises to follow through with a plan to ban Chinese-owned app in U.S. over spying concerns.

Ives said TikTok's owner ByteDance refused to include app's core algorithms as part of a deal.

Those algorithms decide what videos users see without first requiring m to follow or users or specify ir preferences.

TikTok and White House declined to comment Sunday.

Oracle didn't return a request for comment but has previously declined comment.

Trump administration has threatened to ban TikTok by September 20 and ordered ByteDance to sell its U.S. business, claiming national-security risks due to its Chinese ownership.

government worries about user data being funneled to Chinese authorities.

TikTok denied it is a national-security risk.

It's t clear if proposed deal will only cover TikTok's U.S. business, and, if so, how it will be split from rest of TikTok's social media platform, which is popular worldwide.

Any deal must still be reviewed by Committee on Foreign Investment in United States, a U.S. government group chaired by Treasury Secretary that studies mergers for national-security reasons.

president can approve or deny a transaction recommended by panel, though Trump has already voiced support for Oracle as a "great company" that could handle acquisition.