The Trump administration is actively engaged in negotiations to secure the future of TikTok in the U.S. by collaborating with Oracle and a consortium of U.S. investors. The proposed deal involves Oracle and these investors gaining control over TikTok’s global operations, while ByteDance, TikTok’s Chinese parent company, would retain a minority stake in the app.
Under this arrangement, Oracle would oversee critical aspects of TikTok, including its algorithm, data collection, and software updates. This role is designed to address national security concerns related to potential Chinese government interference.
Securing approval from Congress is a major hurdle in this process. Lawmakers require legally binding agreements to ensure ByteDance cannot exert control over TikTok, eliminating any potential backdoors for Chinese access.
Previous attempts at a similar deal have faced challenges. In 2020, a deal involving Oracle and Walmart failed to materialise, and Walmart has opted out of the current negotiations due to valuation concerns. Microsoft is among the potential investors engaged in the talks.
Recently, President Trump issued an executive order extending the deadline for TikTok’s separation from ByteDance by 75 days, although legal experts argue that this action may not override the congressional deadline.
The law requires TikTok to undergo a “qualified divestiture” from ByteDance to continue operating in the U.S. Trump’s executive order provides temporary relief but does not resolve the underlying legal issues.
“The goal is for Oracle to effectively monitor and provide oversight with what is going on with TikTok. ByteDance wouldn’t completely go away, but it would minimise Chinese ownership,” a person involved in the talks explained.
Internationally, Chinese regulators have indicated they will not block a deal that gives American investors a majority stake, potentially using this as leverage for tariff relief. Meanwhile, Apple and Google remain cautious about reinstating TikTok in their app stores due to potential legal penalties.