Donald Trump administration explores TikTok deal with Oracle, Microsoft

Earlier, Trump had expressed openness to Tesla CEO Elon Musk or Oracle Chairman Larry Ellison acquiring the Chinese social media platform

The Donald Trump administration is moving forward with a plan to save TikTok by transferring control of its operations to US-based investors, including Oracle and potentially Microsoft, according to a report in NPR. This comes after Trump had expressed openness to Tesla CEO Elon Musk or Oracle Chairman Larry Ellison acquiring the Chinese social media platform.

 

Proposed structure of the deal

 

The report, citing sources familiar with the negotiations, said that ByteDance, TikTok’s Chinese parent company, would retain a minority stake under the proposed agreement, while Oracle would oversee critical components of the app’s operations. This includes managing TikTok’s algorithm, data collection, and software updates. US-based investors could take a majority stake in the company, but details of the deal remain under discussion.

 

 

“The goal is for Oracle to effectively monitor and provide oversight with what is going on with TikTok,” a source involved in the talks told NPR. “ByteDance wouldn’t completely go away, but it would minimize Chinese ownership.”

 

Negotiations are still in progress. A meeting was held last Friday between White House officials and Oracle executives, with another scheduled for next week. ByteDance is reportedly seeking a valuation of at least $200 billion for TikTok, which could pose a significant financial hurdle for the proposed consortium of investors.

 

TikTok’s legal and political challenges in the US

 

TikTok has faced increasing scrutiny in the US since 2020 over concerns about its ties to ByteDance and the potential for Chinese government access to user data. The US government has long expressed fears that TikTok’s vast user data could be exploited for espionage or influence operations by Beijing.

 

As part of a broader effort to address these concerns, the US Congress passed legislation requiring ByteDance to execute what is known as a “qualified divestiture” to continue operating in the country. While TikTok initially faced a January 19 deadline to comply, President Donald Trump extended the deadline by 75 days through an executive order.

 

National security experts and lawmakers have highlighted concerns that even partial ownership by ByteDance could leave the app vulnerable to Chinese government influence. “There needs to be no backdoors where China can potentially gain access,” a congressional staffer involved in the discussions told NPR.

 

Donald Trump has advocated for US ownership of TikTok, even suggesting that the US should hold a 50 per cent stake. While some interpret this as a call for partial nationalisation, others believe it reflects a vision where American private investors own half the company.

 

Meanwhile, China has said such decisions should be independently made by companies while emphasizing that Chinese laws apply to local firms.

 

"When it comes to actions such as the operation and acquisition of businesses, we believe they should be independently decided by companies in accordance with market principles," Chinese Foreign Ministry spokesperson Mao Ning said.

 

What’s next for TikTok?

 

The proposed deal could mark a turning point for TikTok, ensuring its future in the US while attempting to minimize risks associated with Chinese ownership. However, as the terms remain in flux and tensions between the US and China persist, TikTok’s path forward is far from certain.