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Sources told Reuters that Microsoft didn't help itself when it upset Zhang Yiming, the CEO of TikTok parent firm ByteDance, when it called TikTok a security risk it could fix. Microsoft, formerly the frontrunner to scoop up TikTok's US operations, this week lost out to tech giant Oracle. ByteDance and Oracle have submitted a proposal to the White House that Oracle should become the app's "trusted tech partner" in the US.that ByteDance CEO Zhang Yiming was upset after Microsoft characterized TikTok as a security risk it could fix when speaking to US lawmakers.
Sources also told Reuters Microsoft's bid — which was more than $20 billion — did not satisfy ByteDance's investors. The price plus recent signaling from Beijing that it wouldn't accept a forced sale of TikTok to a US company reportedly sealed Zhang's decision to strike a partnership deal with tech giant Oracle rather than sell outright to Microsoft.
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