The Trump administration is negotiating a plan to secure the future of TikTok in the US, involving Oracle and a group of investors taking control of its operations, reported Reuters. According to insiders, the plan would allow TikTok’s China-based owner, ByteDance, to retain a stake, while Oracle oversees data collection and software updates. Oracle already provides the app’s web infrastructure and would also address national security concerns under the agreement.
ByteDance’s Stake and Oracle’s Role
The Reuters report said that ByteDance would continue to hold a stake in TikTok, but Oracle would manage critical aspects like data security and software updates to mitigate concerns about Chinese government interference. The deal’s specifics are not final and could evolve. Discussions may include TikTok’s U.S. operations and potentially extend to other regions.
Involvement of US Investors
ByteDance’s current US investors, including General Atlantic, Kohlberg Kravis Roberts (KKR), Sequoia Capital, and Susquehanna International Group, are expected to participate in the deal.
Competing Bids and National Security Focus
Other groups, such as one led by billionaire Frank McCourt and another involving YouTuber Mr. Beast, are reportedly not part of the Oracle-led negotiations. TikTok previously partnered with Oracle in 2022 to store U.S. user data, addressing concerns about potential Chinese government access.
TikTok, used by 170 million Americans, faced a temporary shutdown before a law requiring its sale or ban went into effect on January 19. Former President Trump delayed the law’s enforcement by 75 days through an executive order, citing the need to address national security concerns.
Meetings and Financial Stakes
Officials from Oracle and the White House met on Friday to discuss the deal, with another meeting planned next week. NPR reports that Oracle’s interest in TikTok includes a stake valued in the tens of billions. Meanwhile, Trump has stated a preference for the U.S. to have a 50% ownership stake in TikTok through a joint venture.
TikTok’s ban has faced criticism from free speech advocates. The company argues that U.S. officials have misrepresented its ties to China, emphasising that user data and content moderation decisions for American users are handled within the U.S. on Oracle-operated servers.
The proposed deal reflects ongoing efforts to balance national security concerns with preserving TikTok’s operations and popularity in the US.
(With Reuters Inputs)