The Trump administration is advancing a plan to restructure TikTok’s global operations, involving Oracle and a consortium of outside investors, according to individuals with knowledge of the negotiations. This approach aims to ensure oversight of the app while minimizing Chinese ownership.
Under the proposal, ByteDance, TikTok’s parent company based in China, would retain a minority stake. However, Oracle would oversee the app’s algorithm, data collection processes, and software updates, effectively granting American investors majority control. The details of the arrangement remain fluid as discussions continue.
“The objective is for Oracle to oversee and monitor TikTok’s operations,” said a source involved in the discussions who spoke on condition of anonymity. “While ByteDance will still have a presence, its influence will be significantly reduced.”
Other companies, including Microsoft, are also participating in the discussions. Walmart, which previously expressed interest in a TikTok acquisition in 2020, is reportedly not pursuing involvement due to concerns over the app’s high valuation.
Potential Deal Valuation and Congressional Concerns
TikTok’s global business is estimated to be worth at least $200 billion, a figure that presents challenges for interested investors. A critical aspect of the negotiations involves satisfying Congress, which has called for “qualified divestiture” from ByteDance to ensure TikTok’s continued operations in the United States.
President Trump recently issued an executive order extending TikTok’s compliance deadline by 75 days. However, legal experts argue this action may conflict with Congress’s original timeline, which required divestiture by January 19, 2025.
A congressional aide emphasized the importance of legally binding agreements to prevent ByteDance from covertly influencing TikTok operations. “Ensuring that ByteDance has no operational control is vital to earning lawmakers’ trust,” the aide said.
Addressing National Security Concerns
For years, experts have raised concerns about potential access to TikTok’s data and algorithms by Chinese authorities. A prior security initiative, Project Texas, sought to address these issues during the Biden administration but fell short of guaranteeing TikTok’s independence from ByteDance.
The current negotiations aim to eliminate any possibility of backdoor access to U.S. user data. Sarah Kreps, a technology and foreign policy expert at the Brookings Institution, noted the difficulty of proving the absence of external influence. “You can audit millions of lines of code, but definitive proof is hard to establish,” Kreps said.
Chinese regulators have recently softened their stance on a potential TikTok sale, stating that such decisions should be guided by market principles. Analysts believe this shift could signal Beijing’s willingness to approve a deal, potentially as part of broader negotiations with the U.S., such as seeking relief from tariffs.
Despite progress in the talks, uncertainties remain. Companies like Apple and Google have yet to reinstate TikTok in their app stores after the platform experienced a brief outage. Without access to these platforms, TikTok is unable to provide software updates or allow new downloads.
Oracle, however, has moved forward, restoring TikTok’s services based on assurances from Trump’s administration. Other tech companies are more cautious, wary of the significant penalties associated with supporting TikTok while it remains tied to ByteDance.
“The stakes are high for all parties involved,” Kreps remarked. “For companies like Oracle, the political calculus is different, but for others, the risks may outweigh the potential rewards.”
As negotiations continue, the future of TikTok’s operations in the U.S. remains uncertain, with Congress, tech companies, and international stakeholders all playing critical roles in shaping the outcome.