In a major development for the social media landscape, software giant Oracle and Microsoft are reportedly in negotiations to take control of TikTok's global operations, while allowing Chinese owner ByteDance to maintain a minority stake.
According to reports, the White House is actively involved in brokering a deal that would see Oracle overseeing TikTok's algorithm, data collection, and software updates. Oracle already provides much of TikTok's web infrastructure backbone, positioning it as a natural fit for expanded oversight of the platform's operations.
While Microsoft's exact role remains unclear beyond its participation in the discussions, the company was previously involved in a 2020 bid to acquire TikTok alongside Oracle and Walmart. Notably, Walmart has opted out of the current negotiations due to concerns over the app's estimated price tag.
The talks come as TikTok faces continued scrutiny over its Chinese ownership. President Trump recently issued an executive order providing a 75-day grace period regarding enforcement actions related to ByteDance's required divestment from TikTok. Trump has suggested the possibility of a "joint venture" with 50% U.S. ownership.
Industry observers note that any deal would need to address concerns about Chinese influence while satisfying both Congress and regulators. The arrangement under discussion would effectively place American investors in a majority ownership position, though specific terms are still being negotiated.
Oracle is reportedly interested in acquiring a stake "in the tens of billions," with meetings between Oracle and White House officials already taking place and more scheduled for the near future. The complex negotiations must balance national security considerations, corporate interests, and international relations as stakeholders work toward a resolution.