Oracle and a coalition of U.S. investors are in advanced discussions with the Trump administration to take control of TikTok’s global operations, addressing long-standing national security concerns linked to its Chinese parent company, ByteDance.
According to various sources, under the proposed framework, Oracle would manage TikTok’s algorithm, data collection, and software updates, effectively limiting ByteDance’s influence while ensuring U.S. oversight of the platform’s operations.
The deal, if finalized, aims to comply with a federal law that mandates ByteDance divest TikTok’s U.S. operations. Passed by Congress and upheld by the Supreme Court, the legislation underscores growing tensions between the U.S. and China over data privacy and control of major technology platforms.
Minimizing ByteDance’s Role in TikTok
At the heart of the negotiations is the effort to reduce ByteDance’s control while maintaining the app’s functionality and user base in the United States. ByteDance would retain a minority stake in TikTok, but U.S. investors would hold the majority.
Oracle’s role would include monitoring and managing TikTok’s core algorithm and user data to ensure compliance with U.S. privacy standards.
“The goal is for Oracle to effectively monitor and provide oversight with what is going on with TikTok,” an individual involved in the talks told NPR, speaking on the condition of anonymity.
ByteDance’s reduced ownership and operational control are seen as essential steps to assuage U.S. lawmakers’ concerns about potential Chinese government access to American users’ data.
The deal’s financial complexities further complicate the process. ByteDance has reportedly valued TikTok’s global business at $200 billion, a price point that has deterred potential buyers, including Walmart, which backed out over pricing concerns.
Oracle is expected to seek a stake in the “tens of billions” range, while other investors, such as Microsoft, have expressed interest but have yet to confirm their level of involvement.
Congressional Scrutiny and Extended Deadlines
TikTok’s restructuring process stems from a federal mandate requiring ByteDance to divest its U.S. operations by January 19, 2025. While the Supreme Court upheld this deadline, former President Donald Trump, now in his second term, extended the timeline by 75 days through an executive order to allow negotiations to continue.
The extension has not quelled opposition in Congress. Lawmakers remain divided on the terms of the deal, particularly the potential for ByteDance to retain even limited influence.
“There needs to be no backdoors where China can potentially gain access,” a congressional staffer involved in the deliberations told NPR. Ensuring absolute separation between TikTok’s U.S. operations and ByteDance remains a critical sticking point in the negotiations.
This isn’t the first time Oracle has been linked to TikTok. In 2020, a proposed acquisition involving Oracle and Walmart fell apart, raising questions about whether the current negotiations can succeed in addressing both financial and security concerns.
Algorithm Oversight as a National Security Priority
TikTok’s algorithm, which drives its highly engaging recommendation system, lies at the center of the debate over the app’s ownership.
The algorithm’s ability to shape user experiences and influence cultural trends makes its control a key issue in the negotiations. Ensuring that the algorithm operates independently of ByteDance is vital to addressing U.S. security concerns.
“You can audit millions of lines of code, but it’s really hard to show one way or the other,” Sarah Kreps, a technology policy expert at the Brookings Institution, commented to NPR. Critics argue that even with U.S. oversight, fully eliminating the risk of covert influence by ByteDance may be impossible.
Past efforts to secure TikTok’s U.S. operations, such as the Project Texas initiative, involved Oracle’s infrastructure to safeguard American user data. However, the project fell short of providing a comprehensive solution, leading Congress to pursue stricter divestment requirements.
China’s Evolving Position
According to NPR, Chinese regulators have indicated they would not block a potential sale of TikTok, marking a significant shift in their stance. Officials stated that acquisitions “should be independently decided by the enterprises and based on market principles.”
While this statement appears neutral, analysts believe it signals Beijing’s willingness to negotiate, potentially as part of broader trade discussions with the U.S.
However, skepticism remains about whether ByteDance’s minority stake could still provide avenues for influence. Lawmakers and analysts alike have raised concerns about hidden connections or operational backdoors that could compromise U.S. data security.
TikTok’s Operational Challenges and Competitor Advances
TikTok’s current operational challenges underscore the urgency of resolving its legal and ownership disputes. The platform resumed partial services on January 19, 2025, after a brief shutdown but remains unavailable on Apple and Google’s app stores. Without access to these platforms, TikTok cannot attract new users or release updates, severely limiting its growth potential.
Trump has publicly reiterated his commitment to resolving the issue, stating on Truth Social, “Without U.S. approval, there is no TikTok.” While the executive order extending the compliance deadline has provided temporary relief, the broader challenges facing TikTok remain unresolved.
Meanwhile, competitors are capitalizing on TikTok’s uncertainty. Bluesky, a decentralized competitor to X, introduced customizable video feeds, allowing users to tailor their content consumption.
Meta launched “Edits,” a professional-grade video editing app aimed at creators, while X (formerly Twitter) rolled out a vertical video feature to enhance its short-form video offerings. Elon Musk has also hinted at reviving Vine, the defunct six-second video platform, as part of X’s ecosystem.
Broader Implications for U.S. Tech Regulation
TikTok’s legal battle reflects broader tensions between national security priorities and the global technology market. The U.S. government’s scrutiny of foreign-owned platforms underscores its determination to safeguard user data and prevent potential espionage.
The outcome of the TikTok negotiations could set a precedent for regulating other foreign-owned digital platforms, influencing the future of tech governance in the United States.
As negotiations between Oracle, ByteDance, and U.S. investors continue, the stakes remain high for TikTok’s future. The resolution of this high-profile case will likely shape the trajectory of U.S.-China relations in the tech sector and the evolving dynamics of global social media platforms.