Oracle said it has been chosen as TikTok’s “trusted technology partner” by the social media company’s Chinese parent, ByteDance.
The companies have released few details on the proposal, which comes after US president Donald Trump set a deadline for ByteDance to divest itself of TikTok’s US operations, citing security concerns over user data.
Microsoft had earlier said it was in the running to purchase TikTok’s US arm, but confirmed on Sunday that the negotiations had ended without a deal.
TikTok said it had submitted a proposal but did not directly reference Oracle.
“We can confirm that we’ve submitted a proposal to the Treasury Department which we believe would resolve the administration’s security concerns,” the company said.
“This proposal would enable us to continue supporting our community of 100 million people in the US who love TikTok for connection and entertainment, as well as the hundreds of thousands of small business owners and creators who rely upon TikTok to grow their livelihoods and build meaningful careers.”
Oracle specialises in databases and other business software and has no previous experience with social media.
Trump’s deadline took effect on Sunday, meaning that without a deal US companies would have been prevented from doing business with ByteDance starting this week.
ByteDance has denied it poses a security threat and TikTok’s US arm has sued the administration over its actions.
The US administration has taken aim at “untrusted” Chinese apps as part of a broader trade war with China that has notably also focused on telecommunications equipment giant Huawei.
Its 6 August executive order against ByteDance also targets Tencent’s WeChat, one of the main forms of online communications in China.
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