ByteDance's version of the deal would also defy President Donald Trump's order last month calling for the Beijing-based company to relinquish ownership of the app in the United States.
For people who spend a lot of time on TikTok, the past few months have been surreal: a president with no presence on the platform has been agitating to ban it on the basis of national security.
China's ByteDance was racing to avoid a crackdown on TikTok after the US Commerce Department said on Friday it would block new downloads and updates to the app come Sunday.
TikTok presented an entirely new problem, one that most policymakers in the United States had not contemplated before.
Oracle will take a 12.5 percent stake in TikTok Global and store all its US user data in its cloud to comply with US national security requirements, the companies said on Saturday.
President Donald Trump has said he backs the deal between TikTok’s owner ByteDance, Oracle and Walmart to create a new company that will assume the video app’s United States operations called TikTok Global.
China's long-expected "unreliable entities list" is seen as a weapon for Beijing to retaliate against the United States, which has used its own "entity list" to shut Chinese telecom giant Huawei out of the US market, while also moving against TikTok and WeChat.
The US government has given TikTok until November 12 to resolve national security concerns posed by the app, following which the prohibitions may be lifted.
Last month, the Trump administration had issued an executive order calling ByteDance – the parent company – to sell or to completely shut down TikTok's US business operations, citing national security concerns.
'We remain opposed to any deal that would allow China-based or controlled entities to retain, control or modify the code or algorithms that operate any US-based version of TikTok,' Rubio wrote in the letter, dated Wednesday.
Trump's August 11 order banned ByteDance from operating in the United States by September 20 if it does not sell the popular app before then.
The steep rise in following count can be attributed to users looking to get some news updates on TikTok India's comeback.
The total number of Chinese apps blacklisted in India have reached 224.
ByteDance has managed to meet the September 15 deadline to sell TikTok's US operations. The company has chosen Oracle instead of Microsoft.
Vanessa Pappas is keeping a focus on the app’s community of creators and users as it deals with pressure from President Trump, Beijing and a possible sale
ByteDance said in a statement to Reuters that the Chinese government had never suggested to it that it should shut down TikTok in the United States or in any other markets.
For most in China, WeChat is a sort of all-in-one app: a way to swap stories, pay bills, buy stuff and get news. For the millions of China’s diaspora, it links them to home. Woven through it all is the ever more muscular surveillance and propaganda of the Chinese Communist Party
SoftBank also has a stake in ByteDance, the parent company of TikTok.
Beijing last week updated its export control rules to restrict the sale of technology such as the one used by TikTok to recommend videos to users, raising questions over whether it would veto a deal and giving prospective buyers Microsoft and Oracle pause for thought.
The company’s regulatory team and deal negotiators are in discussions to see if it's still possible to craft a sale that can win approval from both governments, an acquirer, venture investors and ByteDance itself.
China's Ministry of Commerce added 23 items – including technologies such as personal information push services based on data analysis and artificial intelligence interactive interface technology – to the restricted list
The big-box retailer has given only a vague rationale for why it would want TikTok, but it appears to boil down to its vast audience of young people.
The offer by Centricus and Triller joins the bids made by US giants like Microsoft, Oracle and Walmart; Twitter and Alphabet
TikTok was initially given 90 days to handover its US business to any American company after President Donald Trump signed an executive order issuing a ban on grounds of national security.
US President Donald Trump has demanded that China's ByteDance, which owns TikTok globally, sell its US operations, citing potential national security risk due to the vast amount of private data the app is compiling on US consumers.