Discussions are reportedly underway involving Oracle and Microsoft, along with a group of external investors, to acquire control of the popular short-video app TikTok. The initiative comes as part of a broader plan under the Trump administration to address concerns about the app’s ownership and data security, according to a report by NPR.
TikTok’s parent company, ByteDance, based in China, may retain a minority stake in the app, but key aspects like the algorithm, data collection, and software updates could reportedly be managed by Oracle under the proposed deal. Sources suggest that meetings between White House officials and Oracle executives took place recently, with further discussions planned for the coming week.
Under the arrangement being considered, TikTok’s American investors could gain a majority stake in the app, although the specifics of the deal remain subject to negotiation and could still change.
“The goal is for Oracle to effectively monitor and oversee TikTok operations in a way that minimizes Chinese ownership while maintaining functionality,” an unnamed source familiar with the matter was quoted as saying.
Valuation and Challenges
ByteDance is said to be aiming for a valuation of at least $200 billion for TikTok, according to reports. This high price tag could pose challenges for potential investor groups vying to acquire the app.
In compliance with U.S. federal law, TikTok was temporarily taken offline in the United States for approximately 14 hours to address ownership concerns tied to its Chinese parent company. Following the inauguration of President Trump, ByteDance was given a 75-day deadline to divest its U.S. operations or face potential bans.
Trump had previously suggested a joint venture as a possible solution, stating, “A partnership between the current owners and U.S. entities, where the U.S. holds a 50% stake, might be the best path forward.”
While negotiations are ongoing, this proposed deal represents a significant step toward resolving the geopolitical and security concerns surrounding TikTok’s ownership, ensuring its continued operation in the U.S.
