The Trump administration is reportedly in talks to finalise a deal that would see Oracle and other U.S.-based investors take over TikTok’s operations. This comes as a response to earlier legislation requiring TikTokโs parent company, ByteDance, to sell its U.S. operations or face a nationwide ban.
ByteDance faces pressure to divest
Last year, lawmakers passed a bill mandating that ByteDance sell TikTok or face a ban in the United States. This decision was driven by national security concerns regarding the appโs Chinese ownership. Initially, the app was set to be banned from January 20, but the ban was delayed after former President Donald Trump issued an executive order.
During his presidency, Trump expressed an idea for a solution, suggesting a joint venture between current and new owners. His proposal outlined the U.S. holding 50% ownership of TikTok. While this concept didnโt come to fruition, recent reports suggest that Oracle may now be close to securing control of TikTok’s global operations, with ByteDance retaining a minority stake.
Oracle emerges as the frontrunner
During Trumpโs first term, Oracle was seen as a potential buyer for TikTok. Although a deal was not struck then, TikTok later confirmed that all U.S. user traffic had been shifted to Oracleโs servers for added security.
At a press conference on Tuesday, Trump commented on the possibility of either Elon Musk, the owner of X, or Larry Ellison, chairman of Oracle, purchasing TikTok outright. While this indicates his openness to various outcomes, lawmakers behind the ban-or-sell legislation have questioned Trumpโs approach, stating that the law requires ByteDance to divest its U.S. interests fully.
This development follows ongoing scrutiny of TikTok’s operations in the U.S. and its handling of user data. A resolution seems closer, with Oracle positioned to play a major role in shaping TikTok’s future.
