The Trump administration is reportedly negotiating a plan to transfer control of TikTok’s global operations to Oracle in a bid to rescue the app from its recent United States ban.
Citing anonymous sources, NPR reported Saturday that a group of U.S. investors, including Oracle and possibly Microsoft, would take control of the app from ByteDance, TikTok’s Chinese parent company. ByteDance would retain a minority stake, while Oracle would oversee TikTok’s algorithm and data collection.
Newsweek has contacted TikTok, Oracle, Microsoft, and the White House via email for comment.
Why It Matters
Last week, President Donald Trump paused TikTok’s nationwide ban in the U.S., after the Supreme Court ordered it be shut down due to national security concerns over its ties to the Chinese government. This could potentially enable Beijing to access user data and influence American users.
The negotiations are seen as a way to mitigate these concerns by placing TikTok’s algorithm under the control of a U.S. company, which could potentially appease lawmakers who have demanded a complete divestiture of ByteDance’s ownership.
What To Know
The proposed deal involves Oracle overseeing TikTok’s data collection and software updates, according to NPR.
However, ByteDance is said to be seeking a $200 billion valuation for TikTok, which would put it out of reach for the group of investors seeking control.
In 2020, a similar attempt to transfer TikTok’s ownership to Oracle and Walmart fell through. This time, Walmart is reportedly not involved due to concerns over the app’s estimated price.
Last Tuesday, President Trump signed an executive order extending the deadline for ByteDance to divest from the app, just one day after a law requiring its ban took effect.
Before taking office, Trump suggested that the U.S. should own 50 percent of TikTok, though it is unclear whether he meant partial nationalization or private American investors holding a majority stake.
However, the president also said he might not save TikTok after all, calling the social-media site “worthless” on his first day back in the White House.
What People Are Saying
An anonymous source directly involved in the negotiations but not authorized to speak publicly said to NPR: “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 minimize Chinese ownership.”
Republican House Speaker Mike Johnson told NBC on Sunday: “When President Trump issued the Truth [Social] post and said, ‘Save TikTok,’ the way we read that is that he’s going to try to force along a true divestiture, changing of hands, the ownership … It’s not the platform that members of Congress are concerned about.
“It’s the Chinese Communist Party and their manipulation of the algorithms—they have been flooding the minds of American children with terrible messages glorifying violence and antisemitism and even suicide and eating disorders.”
What Happens Next
The outcome of the proposed deal may be revealed to the public in the coming days.
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