The Trump administration is negotiating a complex deal that could reshape TikTok’s global operations and ownership structure.
At the cornerstone of the plan is Oracle, a prominent U.S.-based software company, which, along with outside investors, would oversee TikTok’s global operations while ByteDance, TikTok’s China-based parent company, retains a minority stake.
Controversial Deal in Progress
Oracle’s role would encompass controlling critical aspects such as algorithm management, data collection, and software updates, effectively establishing it as a gatekeeper for the app’s compliance with U.S. laws.
Sources privy to the talks suggest that these measures aim to alleviate long-standing concerns over Chinese access to user data.
While American investors are expected to hold a majority stake, the deal is still evolving.
Microsoft is reportedly involved in the discussions, although Walmart has opted out due to concerns over the app’s estimated valuation of $200 billion.
Oracle has expressed interest in a stake valued in the “tens of billions,” but specifics remain undecided.
Meetings between Oracle and White House officials are ongoing, with another scheduled for next week.
President Trump, when questioned about Oracle’s involvement, denied direct discussions with Oracle Chairman Larry Ellison, emphasizing that interest in TikTok spans numerous stakeholders.
Meanwhile, spokespeople from TikTok, Oracle, Microsoft, and the White House have declined to comment on the ongoing negotiations.
Legal and Congressional Hurdles
Key to the deal’s success is addressing congressional concerns. Under a divest-or-ban law signed by President Biden in April 2024, TikTok was given until January 19, 2025, to sever ownership ties with ByteDance.
Although the deadline has passed, Trump issued an executive order granting an additional 75-day extension, though legal experts believe this order cannot override Congress’ mandate.
The primary legislative stipulation is ensuring that TikTok operates independently from ByteDance, with no operational backdoors enabling potential Chinese interference.
Negotiators face pressure to reassure Congress that ByteDance will have no covert influence over TikTok’s operations.
Binding legal agreements, coupled with stringent oversight mechanisms, are viewed as critical steps to alleviate lawmakers’ skepticism.
The proposed deal also seeks to address national security anxieties over possible Chinese access to TikTok’s data and algorithms.
Experts argue that verifying the absence of Chinese control is technically formidable.
Despite extensive audits, complete assurance remains elusive due to the complexity of modern tech infrastructure.
China, which has historically opposed TikTok’s divestiture, has recently softened its stance, signaling potential openness to an ownership change.
Analysts suggest this shift could be a strategic move by Beijing to leverage the negotiations for U.S. tariff relief.
TikTok’s future in the U.S. remains precarious. While Oracle has restored TikTok’s web services, Apple and Google have yet to reintegrate the app into their stores following a Supreme Court decision upholding the ban.
Without updates or widespread availability, TikTok’s operational capacity is curtailed.
The administration’s proposed solutions will need to address a constellation of legal, political, and technical obstacles to ensure TikTok’s survival under predominantly American ownership while safeguarding national security interests.
