Oracle and Microosft along with a group of investors are reportedly in talks to take control of TikTok’s global operations. According to a report from NPR, the deal would see ByteDance, TikTok’s parent company, keep a minority stake in the app. Under the agreement, Oracle would oversee TikTok’s algorithm, data collection, and software updates, effectively reducing Chinese control over the app.
Oracle’s role in the deal
Oracle already plays a significant role in TikTok’s operations, providing much of the server network that supports the app. As part of this potential deal, Oracle would take a more active role in monitoring and overseeing what happens with TikTok’s data and content. This move is part of the broader effort to minimise Chinese ownership and control over the popular social media platform.
Microsoft’s involvement
Microsoft is reportedly involved in the talks, but its exact role remains unclear. In 2020, Microsoft had joined Oracle and Walmart in a bid to acquire TikTok, though that deal ultimately fell apart. Walmart is not part of the current talks due to concerns over the app’s estimated value.
Trump’s executive order and TikTok’s legal battles
The discussions come after an executive order from President Trump, which temporarily delays any enforcement action on ByteDance’s divestment from TikTok. The order gives TikTok a 75-day break from any legal action. Previously, Trump had suggested a “joint venture” model where the U.S. would own 50% of TikTok, but the idea has not been fully pursued.
Other legal challenges for TikTok
In addition to the ongoing talks with Oracle, TikTok is facing several other legal battles. The app has been under scrutiny in various countries over concerns related to data privacy and national security. The US government has raised concerns about the potential for TikTok to share user data with the Chinese government, given ByteDance’s ownership. Other countries, including India, have also taken action against TikTok, with India banning the app outright over similar concerns. TikTok is also facing lawsuits related to its handling of user data, particularly regarding the protection of children’s privacy.
