TikTok owner chooses Oracle over Microsoft as preferred suitor

The owner of TikTok has chosen Oracle over Microsoft as its preferred suitor to buy the popular video-sharing app, according to a source familiar with the deal who was not authorized to speak publicly about it.

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

TikTok declined to comment Sunday. Oracle didn’t return a request for comment.

The Trump administration has threatened to ban TikTok by Sept. 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 denies it is a national-security risk and is suing to stop the administration from the threatened ban.

It’s not clear whether the proposed acquisition 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. Bytedance also owns a second 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 U.S. government group chaired by the Treasury Secretary that studies mergers for national-security reasons. The president can approve or disapprove 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...