Last month President Trump vowed to ban the use of the Chinese social media giant domestically if a US enterprise didn’t acquire it in 45-days. The Trump administration is concerned that TikTok (and in turn, the Chinese government) knows too much about its 80 million US users.

There has been a slew of eclectic bidders, including Microsoft MSFT, Walmart WMT, Twitter TWTR, and Oracle ORCL.

Beijing’s latest export restriction on intellectual property threw a wrench into recent negotiations. This has risen the question of whether TikTok’s proprietary algorithm could be included in the deal. Without TikTok’s underlying algorithm, the value added to an acquirer diminishes significantly.

I believe the new Chinese restriction frightened away bidders granting Oracle the bid.

The specifics of the arrangement are still unknown. According to those familiar with the deal, Oracle is approaching this as more of a partnership than an acquisition.

Despite the relatively high level of uncertainty associated with the agreement, ORCL is up over 4% in trading today.

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