Oracle wins TikTok over Microsoft in Trump-urged bid

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 U.S.

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

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

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

Those algorithms decide what videos users see without first requiring them to follow other users or specify their preferences.

TikTok and the White House declined to comment Sunday.

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

The 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.

The government worries about user data being funneled to Chinese authorities.

TikTok denied it is a national-security risk.

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

Any deal must still be reviewed by the Committee on Foreign Investment in the United States, a U.S. 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.