ByteDance that owns TikTok rejects Microsoft's offer

The Chinese company "ByteDance" that owns TikTok has rejected an offer from Microsoft to buy its activities in the United States, according to the American newspaper New York Times, citing US company officials and people "familiar with" the negotiations between the two parties.

The Chinese company, ByteDance, has been in talks to sell its short video application operations in the United States to buyers, including Microsoft and Oracle, since US President Donald Trump threatened last month to block the service if it was not sold, and ByteDance gave a deadline until mid-September to complete the deal.

And Reuters said, Friday, citing three "informed" sources, that Beijing opposes the Chinese company selling its activities in the United States, and it would be better for them to permanently stop the application in the United States.

By rejecting Microsoft's offer, the Chinese company remains the only US company in the competition. ByteDance had previously said that Oracle was its "technology partner," but it was not clear whether this meant that it would also take an ownership stake in the app, according to New York Times sources.

There was no official comment from Microsoft or ByteDance, and it is not clear why the offer was rejected by the American technology giant, which insists on controlling the application codecs if their offer is approved, which is what Beijing responded by issuing new regulations that prevent the Chinese company from transferring its technology. To a foreign buyer without express permission from the Chinese government.

A few weeks ago, the Trump administration issued an executive order prohibiting the use of the application in the United States, and said that it allows China to track down federal employees, prepare files for people for the purpose of extortion, and spy on companies.

And Microsoft said, earlier, that it is in talks to acquire the application, and that it aims to complete it by September 15, stressing that it will ensure the transfer of all personal data of American users and that it remains in the United States.