Two weeks ago, Microsoft told bankers it was confident it was the frontrunner in a bid to acquire TikTok’s operations in the U.S. against competing bidders such as Oracle. In one discussion with banks about potentially financing the deal for the ascendant viral video app, a Microsoft executive said the company was well-positioned to win the backing of the Trump White House, which had set the auction process in motion in July alleging the app posed a threat to national security, according to a person with direct knowledge of the meeting.

Then last week, Microsoft executives told some banks that the company no longer was considering using bank loans for the deal, a decision some bankers viewed as abrupt.