The Article Tells The Story of:
- Oracle and Microsoft are in talks to oversee TikTok’s global operations, with ByteDance keeping a minority stake.
- The U.S. government demands ByteDance divest from TikTok due to security concerns.
- Oracle’s role may involve monitoring the app’s algorithm, data, and updates.
- Challenges include valuation concerns, ByteDance’s control, and geopolitical tensions.
Oracle and Microsoft Eye TikTok Takeover
Reports indicate Oracle and Microsoft are negotiating a deal to acquire TikTok’s global operations. According to NPR, Oracle would manage the app’s worldwide functions, including algorithm oversight, data collection, and software updates. Meanwhile, Microsoft is reportedly considering a significant investment in the app. ByteDance, TikTok’s parent company, is expected to retain a minority stake in the platform.
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This potential deal is unfolding amid heightened scrutiny from the United States government. President Trump’s administration has played a significant role in pressuring ByteDance to divest from TikTok to address concerns over data security and Chinese ownership. While the White House is reportedly involved in negotiations, President Trump recently denied direct collaboration with Oracle.
“I have spoken to many people about TikTok, and there is great interest,” Trump said during a recent flight to Florida, as reported by Reuters. However, he clarified, “No, not with Oracle. Numerous people are talking to me about buying it, and I will make that decision over the next 30 days.”
Key Players and Their Roles
Oracle appears to have a significant advantage in these discussions. Its existing server infrastructure already supports much of TikTok’s backend, making it well-positioned to oversee the platform’s operations. According to anonymous sources cited by NPR, Oracle’s role would be to “effectively monitor and provide oversight” to minimize Chinese ownership and influence over TikTok’s data and technology.
Microsoft’s involvement in the talks is less clear, but it reportedly aims to secure an investment in TikTok. This is not Microsoft’s first encounter with TikTok; the tech giant was involved in a similar acquisition bid in 2020, alongside Oracle and Walmart. Back then, Microsoft co-founder Bill Gates famously called the opportunity a “poisoned chalice,” highlighting the challenges associated with owning a high-profile app like TikTok.
Interestingly, Walmart is not participating in the current talks, allegedly due to concerns over the app’s high valuation. Other potential buyers, including Elon Musk, real estate mogul Frank McCourt, and Shark Tank host Kevin O’Leary, have expressed interest in acquiring TikTok. President Trump has also suggested that Larry Ellison, Oracle’s co-founder, should purchase the platform.
Government Involvement and Strategic Goals
The U.S. government’s involvement in this deal stems from national security concerns. ByteDance has faced ongoing allegations of sharing user data with the Chinese government, which the company has repeatedly denied. In response, the Trump administration issued an executive order requiring ByteDance to divest from TikTok within 75 days.
The negotiations aim to establish a framework that reduces Chinese ownership while ensuring TikTok’s continuity in the U.S. market. One source described Oracle’s potential role as providing “oversight with what is going on with TikTok,” ensuring compliance with U.S. regulations.
Challenges and Speculation
While Oracle and Microsoft are leading the talks, the deal faces several hurdles. ByteDance’s willingness to cede control of TikTok remains uncertain, and the app’s valuation could complicate negotiations. Walmart’s decision to withdraw from the talks underscores concerns about the app’s cost.
Some analysts have raised questions about Oracle’s suitability for managing TikTok. Critics argue that overseeing a platform with over one billion users worldwide may exceed Oracle’s expertise in consumer-facing technologies.
Adding to the intrigue, some experts view the negotiations as part of a broader geopolitical struggle between the U.S. and China. TikTok has become a symbol of technological competition, with its future ownership reflecting larger trends in global tech dominance.
The Road Ahead for TikTok
The outcome of these negotiations will have far-reaching implications for TikTok, its users, and its parent company, ByteDance. If Oracle and Microsoft finalize the deal, the app’s operations, data security, and user experience could undergo significant changes.
The negotiations also highlight the growing intersection of technology, business, and geopolitics. As companies like Oracle and Microsoft vie for control of TikTok, the app’s future will serve as a case study in balancing innovation, security, and international cooperation.
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