Oracle set to Buy TikTok’s U.S Subsidiary
Oracle recently emerged as a leading contender to assist TikTok in resolving its current predicament. Nonetheless, it is reported that ByteDance’s executives would like to remain actively involved in TikTok’s business operations under any such agreement.
The White House is reportedly considering a deal with Oracle to give the tech giant a stake in the business in exchange for protecting American data on TikTok,
ByteDance would retain control of the app’s algorithm. However, Shou Zi Chew, the CEO of TikTok, has consistently opposed disclosing the app’s proprietary algorithm. Oracle and TikTok did not respond to a request for comment.
Reuters presented a different Oracle scenario on Friday that suggests the largest non-Chinese investors in ByteDance might expand their current holdings and buy TikTok’s American operations as part of a new company.
Oracle isolates American users’ data to keep China from accessing it.
The U.S. Congress-imposed ban on the social platform will go into effect on April 5 if it fails to find a buyer for TikTok’s American operations.
“A high-level agreement will likely address U.S. national security issues by early April,” Vice President JD Vance told reporters.
Furthermore, President Trump announced last weekend that four bidders had arrived, but he did not provide their names. Trump and others had previously suggested the names of Microsoft (MSFT), Perplexity, an AI startup, a group of billionaire investors, and even the government. But the name Oracle kept coming up.
Oracle was unsuccessful in acquiring TikTok during Trump’s first term. TikTok continues to be the company’s main cloud provider despite this. To comply with U.S. regulations regarding domestic data storage,
TikTok implemented a “Project Texas” overhaul some years back, which involved redirecting its American traffic through Oracle’s cloud.
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