Oracle si Microsoft are in talks to take over the global operations of TikTok, according to sources within the companies. The deal would allow ByteDance to maintain a minority stake in TikTok, while Oracle would oversee the app's algorithm, data collection and software updates, the sources said.
The White House is negotiating the deal, although President Trump has previously denied that he is working with Oracle on the matter. Oracle's server network already supports much of TikTok's infrastructure, and a potential partnership could allow Oracle to more effectively monitor the app's activity. The main goal of the deal is said to be to reduce Chinese influence over TikTok.
Microsoft's involvement in these talks is not clear in detail, only being mentioned as being "engaged in discussions." The company has already been involved in previous attempts to take over TikTok, along with Oracle and Walmart, in a 2020 bid that Microsoft co-founder Bill Gates described as "a poisoned apple." Walmart is reportedly not participating this time, after being spooked by the app's estimated price.
The talks come after President Trump issued an executive order granting TikTok and other apps a 75-day reprieve from any enforcement action related to the U.S. demand that ByteDance spin off TikTok. Trump had previously suggested the possibility of a “joint venture,” in which the U.S. would own 50% of the company.
The ongoing negotiations reflect the US government's efforts to address concerns about data security and Chinese influence within social media platforms. A deal with Oracle and Microsoft could be a solution to keeping TikTok's operations in the United States under the supervision of American companies.
