The Trump administration is reportedly exploring a plan to transfer control of TikTok’s global operations to U.S. investors, with Oracle leading the effort. This development comes in response to ongoing concerns about the app’s ties to China and its data security practices.
Oracle’s Role in a Potential Deal
Citing unnamed sources, NPR revealed on Saturday that Oracle, along with a group of U.S. investors, is negotiating to acquire TikTok’s operations from ByteDance, its Chinese parent company. Oracle would oversee the app’s algorithm and data collection processes, a move aimed at addressing national security fears. ByteDance, however, is expected to retain a minority stake in the company.
This proposed structure is intended to reassure lawmakers who have been vocal about the risks of Chinese influence through TikTok. For now, neither Oracle, Microsoft, ByteDance, nor the White House has issued a comment on these developments, despite inquiries from Newsweek.
Why This Matters
TikTok has been a focal point in U.S.-China relations, with officials repeatedly citing national security concerns. Last week, President Donald Trump paused a nationwide ban on the app following a Supreme Court order. The administration has argued that TikTok’s ownership by a Chinese company could potentially allow Beijing to access sensitive user data and sway American public opinion through its algorithms.
Republican House Speaker Mike Johnson expressed similar concerns during an NBC interview, emphasizing the potential manipulation of content algorithms. “It’s not the platform itself that worries Congress; it’s the ability of the Chinese Communist Party to control the narrative and flood young minds with harmful messages,” Johnson said.
Challenges to Closing the Deal
The financial aspects of this deal could prove a significant hurdle. ByteDance is reportedly valuing TikTok at $200 billion—a price tag that may deter U.S. investors. This valuation raises questions about the feasibility of an acquisition under the current structure.
A similar deal in 2020, which would have involved Oracle and Walmart acquiring TikTok’s U.S. operations, fell apart over legal and financial complications. This time around, Walmart is notably absent from discussions, likely due to concerns over TikTok’s high valuation.
While Oracle’s involvement may seem like a logical step to address security concerns, ByteDance’s minority stake could still draw skepticism from U.S. lawmakers and regulators demanding a full divestiture.
The Bigger Picture: National Security and Tech Oversight
TikTok isn’t the first foreign-owned app to face scrutiny over its data practices. With millions of users in the U.S., it has drawn more attention than most. The Trump administration has been vocal about the risks of allowing a Chinese company to manage such a popular platform.
Some members of Congress, including President Trump himself, have floated ideas ranging from banning TikTok entirely to nationalizing it or ensuring at least 50% American ownership. However, Trump’s public comments on the platform have been inconsistent. While he has hinted at saving TikTok, he has also called it “worthless,” leaving the future of the app in question.
What Lies Ahead?
Negotiations are ongoing, with details expected to emerge in the coming days. If the deal is finalized, it could set a precedent for how foreign-owned tech companies operate within the U.S. Oracle’s oversight of TikTok’s algorithm and data collection would represent a significant shift in the regulatory landscape for tech platforms.
As the clock ticks, ByteDance, Oracle, and U.S. regulators face mounting pressure to reach an agreement that satisfies all parties while addressing concerns over user data and foreign influence. For TikTok’s millions of American users, the resolution of this saga could determine the app’s future accessibility.