TikTok is facing a looming deadline to finalise a sale to a U.S.-based buyer by April, yet the future of the short-form video app remains shrouded in uncertainty. However, recent developments suggest that Oracle is set to play a pivotal role in TikTok’s operations in the United States.
Oracle, led by tech mogul Larry Ellison, has emerged as the preferred cloud technology partner for TikTok, according to sources familiar with the situation. This preference is largely due to Oracle’s existing partnership with TikTok, which began in 2022 when TikTok started using Oracle servers to store U.S. user data. This collaboration is part of an initiative known as “Project Texas,” which aims to alleviate Congressional concerns by housing U.S. user data on Oracle-managed servers.
Project Texas is a multibillion-dollar initiative that also allows Oracle to review TikTok’s algorithm for safety and security. This project was initially proposed to address national security concerns raised by lawmakers, who have been pushing for ByteDance to divest its stake in TikTok due to its Chinese ownership.
Despite the push for divestiture, ByteDance, TikTok’s parent company, is keen on maintaining a significant role in TikTok’s operations. The company hopes to partner with Oracle while retaining some control over the app. However, this stance may face resistance from Congress, which has mandated a full divestiture to address national security concerns.
The Trump administration has been actively involved in negotiations to secure a deal that would prevent a complete ban of TikTok in the U.S. President Trump has expressed support for Oracle’s involvement in such a deal, further solidifying Oracle’s position as a key partner. The administration’s efforts include discussions with Oracle and other potential investors to ensure oversight of TikTok’s operations, with the aim of reducing ByteDance’s Chinese ownership.
While Oracle is currently the frontrunner, other potential bidders are also in the mix. These include a consortium led by billionaire Frank McCourt, which has proposed a $20 billion cash offer for TikTok’s U.S. operations, and another group led by Jesse Tinsley, offering over $30 billion. However, these bids may face challenges due to ByteDance’s preference for partnering with Oracle.
The success of any deal will depend on addressing Congressional concerns while satisfying ByteDance’s desire to maintain some level of control over TikTok. With Oracle at the forefront, the future of TikTok in the U.S. hangs in the balance, awaiting a resolution that levels national security with business interests.