The Trump administration is working on a plan to protect TikTok from potential bans, involving a collaboration with Oracle and a group of outside investors to manage the app’s operations. According to sources familiar with the discussions, ByteDance, TikTok’s China-based parent company, would continue to hold a stake in the platform, but Oracle would take charge of overseeing critical areas like data collection and software updates.
Deal Framework Still in Flux
Sources told Reuters that the details of the deal are still being negotiated, and its final scope remains uncertain. While the discussions may include U.S. operations, they could also extend to other regions. National Public Radio (NPR) reported over the weekend that talks are focused on TikTok’s global operations, with no immediate comments from the White House or Oracle.
Investor Participation and Stakeholders
As part of the potential deal, ByteDance’s U.S. investors, including Jeff Yass’s Susquehanna International Group, General Atlantic, Kohlberg Kravis Roberts (KKR), and Sequoia Capital, are expected to play a role. However, some competing investor groups, such as those led by billionaire Frank McCourt and YouTube star Mr. Beast (Jimmy Donaldson), are not involved in the negotiations with Oracle, one source revealed.
Oracle’s Role in Addressing National Security Concerns
Under the terms being discussed, Oracle would be responsible for managing national security issues tied to the app’s operations. In 2022, TikTok had already struck a deal with Oracle to store the personal data of U.S. users on its cloud infrastructure to address concerns over Chinese government access to this information.
Despite the shifts in management structure, TikTok’s internal leadership would remain in place to run the day-to-day operations of the app, one source stated.
Possible Sale or Ban Concerns
TikTok, which boasts 170 million users in the U.S., was briefly taken offline in mid-January in advance of a law that required ByteDance to sell its U.S. operations or face a ban on national security grounds. The law, which aims to prevent potential Chinese interference, prompted President Trump to sign an executive order on January 20 to delay enforcement for 75 days.
White House, Oracle, and Congress Interactions
Officials from Oracle and the White House met last Friday to discuss the potential deal, with another meeting scheduled for the coming week, NPR reported. Oracle is reportedly interested in acquiring a stake in TikTok “in the tens of billions,” though the deal’s structure is still being worked out.
President Trump has previously expressed interest in the U.S. holding a 50% ownership stake in any joint venture with TikTok. According to NPR sources, navigating Congressional concerns is seen as a significant challenge in finalizing the deal.
Concerns Over Free Speech and Data Privacy
The potential sale or restructuring of TikTok has sparked debates, with free speech advocates pushing back against the law requiring a sale. TikTok has disputed claims about its ties to China, emphasizing that user data is stored in the U.S. on Oracle-operated cloud servers and that content moderation for American users is also handled domestically.
Related topics:
Oil Prices See-Saw as Trump Unveils New Energy Policies and Tariff Threats
Bitcoin Retreats as Traders Await Pro-Crypto Policy Direction from Trump
Trump Lifts Moratorium on LNG Exports, Resuming Permitting Process
