Chinese social media platform TikTok has pulled out of a deal that would have seen it acquired by US tech giant Microsoft.
US President Donald Trump has repeatedly said that he will ban the Chinese video sharing platform from the US, unless its parent company, ByteDance, sells it to a US based investor. The move comes as part of a concerted push against Chinese owned tech firms by the US government.
Microsoft was believed to be in the driving seat to acquire TikTok and had said that it hoped to conclude discussions over a potential deal by the 15th of September 2020.
“Following a conversation between Microsoft CEO Satya Nadella and President Donald J. Trump, Microsoft is prepared to continue discussions to explore a purchase of TikTok in the United States.
“Microsoft fully appreciates the importance of addressing the President’s concerns. It is committed to acquiring TikTok subject to a complete security review and providing proper economic benefits to the United States, including the United States Treasury,” the US tech giant had said in an online blog post.
However, on the 14th September, the BBC reported that TikTok had pulled out of the deal. TikTok’s parent company ByteDance has not yet commented on the reason for the breakdown in the deal. However, Reuters reported that Microsoft had been out bid on the financial terms of the deal by a rival.
The developments leave Microsoft’s rival Oracle as the preferred candidate to complete a deal to acquire TikTok.