In the previous article, we have mentioned that Microsoft issued a formal statement stating that Bytedance has rejected Microsoft’s proposal to acquire TikTok’s business in the US.
Originally, Microsoft was regarded as the best acquirer of TikTok. Now that the negotiations are terminated, Oracle has become the dominant buyer and will continue to negotiate the deal.
In fact, there are not many choices in front of Bytedance. Microsoft did not disclose the details, so it is not clear whether it is really pure price factor that caused the breakdown of the negotiation.
Since there are fewer potential buyers now, ByteDance may still be sold at a low price, because TikTok must completely withdraw from the US market if the transaction cannot be completed.
Previously, China has updated relevant laws to require approval for the sale of recommended algorithms, and ByteDance is best at recommending algorithms.
A few days ago, the media also disclosed that ByteDance will not hand over the algorithm behind it. This means that any potential buyer can purchase Tiktik but cannot obtain the algorithm. After the purchase, the buyer needs to develop the recommendation algorithm.
It is not clear whether there is also an algorithm factor in the breakdown of the negotiations between Microsoft and ByteDance. After all, the purchase price may continue to decrease if the recommended algorithm is stripped.