The Trump administration is working on a plan to prevent a nationwide ban on TikTok, involving Oracle and a group of private investors. Under the proposal, ByteDance, TikTok’s Chinese parent company, would retain a minority stake, while Oracle would take charge of key operations, such as algorithm management, data collection, and software updates. This arrangement aims to address national security concerns about Chinese government access to TikTok user data by ensuring that U.S.-based investors hold the majority stake. While terms are still being discussed, Oracle’s role is seen as central to alleviating risks.
Discussions around the deal have intensified following the Trump administration’s executive order that temporarily paused TikTok’s ban. The arrangement is crucial as TikTok missed its divestiture deadline set for January 19, 2025, under U.S. law. The deal aims to resolve the issue while complying with national security concerns, with sources noting that Oracle’s oversight would help mitigate potential risks related to Chinese control.
Microsoft and other tech companies are reportedly involved in the bidding process, but Walmart, after concerns about TikTok’s high valuation, has pulled out.
The plan to address the ban and ownership structure is complicated by ongoing scrutiny from Congress. Lawmakers are pushing for safeguards to ensure that ByteDance no longer has access to U.S. users’ data, focusing on the importance of preventing “backdoors” that could allow covert data access. The Supreme Court recently upheld legislative measures requiring ByteDance to give up majority control to keep TikTok operational in the U.S. Despite legal challenges delaying compliance, Congress remains highly concerned about the security risks associated with ByteDance’s involvement in the platform’s operations.
As the situation develops, TikTok faces operational hurdles, such as being blocked from updates and new downloads on Apple and Google’s app stores. These companies, wary of potential fines, have yet to restore TikTok to their platforms, though Oracle has resumed its web infrastructure services for the company. The deal’s resolution remains uncertain, and it could have broader implications for the global tech landscape, with questions still pending about TikTok’s valuation, the level of U.S. government oversight, and the future of the app’s operations amid geopolitical tensions.
