The White House is reportedly in discussions to establish a deal that would allow Oracle and a group of U.S.-based investors to take control of TikTok’s global operations, according to a report by National Public Radio (NPR). This move could significantly alter the ownership structure of the widely popular social media app, which is currently owned by China-based ByteDance.
A Shift in Control
Under the proposed deal, ByteDance would retain a minority stake in TikTok, but critical aspects of the app—including its algorithm, data collection practices, and software updates—would be overseen by Oracle. Oracle already provides the backbone for TikTok’s web infrastructure. The deal would also allow a majority stake in TikTok to be held by U.S. investors, effectively reducing Chinese ownership and addressing national security concerns.
“The goal is for Oracle to effectively monitor and provide oversight with what is going on with TikTok,” an unnamed source with direct knowledge of the talks told NPR. Another source indicated that while ByteDance would still have a limited role, its influence would be minimized under the new structure.
The Role of U.S. Investors
Besides Oracle, other U.S. investors and companies, including Microsoft, are reportedly involved in negotiations. Oracle has expressed interest in taking a stake in TikTok valued “in the tens of billions,” but details of the broader agreement remain in flux.
Regulatory Hurdles
A key challenge for the White House is to craft an agreement that satisfies Congress, where concerns over TikTok’s ties to China have been growing. Lawmakers have raised questions about the potential misuse of TikTok’s user data, as well as the app’s influence on American users, particularly younger audiences.
ByteDance has faced increasing scrutiny in recent years, with accusations of data-sharing with the Chinese government—a claim the company has consistently denied. By transferring oversight of TikTok’s data and algorithms to Oracle and U.S.-based investors, the White House hopes to mitigate these concerns.
Ongoing Talks
Officials from Oracle and the White House already held a meeting on Friday to discuss the potential deal, with another meeting scheduled for next week, NPR reported. While talks are progressing, the terms of the deal are still being negotiated, and changes could occur.
This deal could mark a pivotal moment for TikTok, which has become one of the most downloaded social media apps globally. However, the outcome will depend on whether the administration can hammer out an arrangement that satisfies both business stakeholders and political leaders.
As the situation develops, all eyes will be on the White House and its ability to navigate the complex intersection of business, technology, and national security.
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