HomeCyber BalkansWhite House Explores Possibility of Oracle-Led Acquisition of TikTok Involving American Investors

White House Explores Possibility of Oracle-Led Acquisition of TikTok Involving American Investors

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In a significant turn of events, the Trump administration is said to be working on a plan to avoid a nationwide ban on TikTok, with the involvement of Oracle and a group of private investors. This plan would see ByteDance, the Chinese parent company of TikTok, retaining a minority stake in the company, while Oracle would take charge of crucial operations such as algorithm management, data collection, and software updates.

The aim of this proposed arrangement is to ensure that U.S.-based investors have the majority stake in TikTok, addressing concerns about potential access to user data by the Chinese government. Although discussions are still ongoing and the terms are subject to change, sources close to the negotiations have emphasized the pivotal role that Oracle would play in mitigating risks.

One source familiar with the talks highlighted that Oracle’s main goal would be to effectively monitor and oversee TikTok’s operations. By reducing ByteDance’s stake in the company, fears about Chinese control would be alleviated, although there are still ongoing debates about fully severing operational ties.

While Microsoft and other tech giants are said to be involved in the bidding process, Walmart has reportedly withdrawn its interest due to concerns about TikTok’s valuation, which is estimated to be at least $200 billion. President Trump’s executive order has temporarily halted TikTok’s ban, but there is a sense of urgency to finalize a deal as TikTok missed the deadline for divestiture under U.S. law.

The path forward for TikTok hinges on appeasing Congress, which has been demanding safeguards to prevent covert data access by ByteDance. Lawmakers have been pushing for ByteDance to relinquish majority control, with the Supreme Court recently upholding measures for “qualified divestiture” to maintain TikTok’s operations in the U.S.

The concerns about Chinese control have prompted lawmakers to insist on eliminating any potential “backdoors” in TikTok’s operations. These concerns stem from fears within the technology and foreign policy sectors about hidden vulnerabilities that might exist even after a full audit of TikTok’s code.

As the negotiations between Oracle and the White House progress, questions remain about TikTok’s valuation, the extent of U.S. government oversight, and the potential impact of this deal on the global tech landscape. The stakes are high for all parties involved as they navigate the complex intersection of technology, politics, and international relations.

Meanwhile, TikTok continues to face operational challenges, with Apple and Google yet to restore the app to their stores, effectively blocking updates and new downloads. Both companies cite risks of significant fines under U.S. law for supporting a platform controlled by ByteDance.

As the situation evolves, it’s clear that the future of TikTok hangs in the balance, with critical decisions being made that could have far-reaching implications for the tech industry and beyond. The coming days will be crucial in determining the fate of TikTok and its place in the global digital landscape.

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