Oracle to Potentially Lead Global TikTok Deal
The White House is actively working with Oracle and a group of investors to acquire TikTok’s global operations, NPR reports. Microsoft is also rumored to be considering an investment, though details remain unclear.
Officials from Oracle and the White House held discussions on Friday, with a follow-up meeting planned for next week. Oracle, TikTok’s US cloud provider since 2022, has played a central role in alleviating national security concerns tied to the app’s Chinese ownership.
Background on TikTok’s Ban and Oracle’s Role
TikTok faced a nationwide ban in the final days of President Biden’s term, stemming from unresolved security concerns. The app was removed from US app stores after a congressional deadline passed, requiring TikTok to be sold by its Chinese parent company, ByteDance. However, former President Trump signed an executive order delaying the ban by 75 days, claiming he intended to “save” the app.
While Oracle resumed hosting TikTok in the US, Apple and Google have yet to reinstate the app on their platforms. Oracle founder Larry Ellison, a notable supporter of Trump’s 2016 presidential bid, was previously involved in an effort to acquire TikTok Global alongside Walmart. That 2020 deal fell through after Trump’s reelection loss.
Oracle’s Proposed Stake in TikTok
Under the new proposal, Oracle would take a minority stake in TikTok, backed by outside investors. ByteDance, TikTok’s current owner, would retain a minority share. Oracle’s oversight would extend to TikTok’s algorithm, data collection practices, and software. Unlike the earlier deal, Walmart is not involved in this iteration, potentially due to TikTok’s estimated valuation of $200 billion.
Microsoft Rejoins the Conversation
Microsoft, which bid for TikTok back in 2020, is another potential investor. CEO Satya Nadella previously described negotiations over TikTok’s US operations as “the strangest thing I’ve ever worked on.” While its level of involvement in the current talks remains uncertain, Microsoft’s interest signals the strategic importance of TikTok within the tech industry.
Valuation and Challenges Ahead
TikTok’s valuation remains a critical sticking point. ByteDance reportedly values the platform at $200 billion, making it one of the most sought-after assets in the social media landscape. Negotiators face additional challenges, including regulatory hurdles and unresolved legal questions about the validity of Trump’s executive order.
FAQ Section
Why is TikTok being sold?
TikTok’s sale is primarily driven by national security concerns in the US, where lawmakers fear data collected by the app could be accessed by the Chinese government.
Who are the key players in the TikTok acquisition talks?
Oracle and Microsoft are currently at the forefront, with Oracle likely leading the deal. ByteDance, TikTok’s owner, would retain a minority stake.
Why is Walmart not involved in the latest deal?
Walmart’s absence from the current negotiations could be attributed to TikTok’s high valuation, reportedly set at $200 billion.
What role will Oracle play if the deal is finalized?
Oracle would oversee TikTok’s algorithm, data collection practices, and software, ensuring compliance with US regulatory standards.
Is the executive order delaying the TikTok ban legal?
Legal experts have questioned the validity of Trump’s executive order, as it cannot override the congressional deadline for TikTok’s sale.
