US President Donald Trump recently expressed his engagement in discussions about potentially acquiring the popular social media platform, TikTok. He hinted that a significant announcement regarding the app’s fate could arrive within the next month.
While on a journey to Florida aboard Air Force One, he stated, “I’ve had conversations with a multitude of individuals about TikTok, and the interest is truly vast.” This comment reflected the administration’s growing focus on the app, which has become a cultural phenomenon.
According to a report from Reuters earlier that day, various sources with insight into the conversations mentioned that Trump’s administration is pursuing a strategy to ensure TikTok’s survival. The outlined plan reportedly involves significant collaboration with Oracle, a software juggernaut, alongside outside investors who aim to gain control over the app’s operational processes.
Under the evolving agreement, ByteDance—the China-based parent company of TikTok—would still hold a minority stake. However, Oracle would take charge of critical areas like data management and software enhancements. This arrangement would follow their existing partnership, which already supports the infrastructure of TikTok’s online presence, as disclosed by one of the insiders.
When pressed about whether he was securing a deal with Oracle and other stakeholders, Trump quickly clarified, “No, not specifically with Oracle. Numerous substantial individuals are reaching out to me about purchasing it, and I anticipate making a decision within the next 30 days. Congress has allotted 90 days, and if we can preserve TikTok, it would be a positive outcome.”
It’s noteworthy that Trump stated he had not directly communicated with Oracle’s founder, Larry Ellison, regarding the acquisition. This omission suggests a broader landscape of negotiations, still murky and in flux.
Sources indicate that specifics surrounding any potential agreement with Oracle remain uncertain and could evolve as developments unfold. Another insider shared that the discussions could encompass TikTok’s operations not just within the US but globally as well. A report from National Public Radio suggested that these talks are gaining traction, gathering attention from key figures keen on a piece of the pie.
ByteDance’s existing investors, including names like Jeff Yass’s Susquehanna International Group and Sequoia Capital, are expected to be part of the forthcoming discussions, underscoring the keen interest in the social media giant.
Interestingly, prospective bidders also include a group spearheaded by billionaire Frank McCourt and another collaboration featuring YouTube sensation Jimmy Donaldson, known as Mr. Beast. However, these groups are not involved in negotiations with Oracle, which could reignite competitive tensions in the marketplace.
Part of the proposed agreement stipulates that Oracle would address pressing national security concerns. TikTok had previously struck a deal with Oracle back in 2022 to manage the vast amount of user data held in the US, addressing fears of possible interference from the Chinese government.
Despite the changes at the upper management level, it appears TikTok’s core operational team would remain intact, as indicated by one source familiar with the negotiations.
With approximately 170 million Americans tapping into TikTok daily, the platform briefly went offline for users just before the enforcement of a law mandating its sale or a ban, citing national security risks. Trump, just a day after taking office, deferred the enactment of this law for 75 days, acting on concerns voiced by US officials apprehensive about the potential misuse of American data.
The debate surrounding TikTok has ignited tension, particularly among advocates for free speech, who have opposed the app’s potential ban—a measure enacted under a law signed by former President Biden.
Recent meetings between Oracle representatives and White House officials have indicated ongoing interest in arriving at a workable agreement. NPR has reported that Oracle is considering an investment of “tens of billions” for a stake in TikTok, though many details remain up in the air.
In his remarks, Trump emphasized the desire for the United States to secure a 50% stake in any joint venture involving TikTok, showcasing his inclination towards significant national involvement in the platform. Yet, it seems that garnering Congress’s support is deemed a critical obstacle to finalizing any agreement, as per NPR’s analysis.
Despite the swirling controversies, TikTok has ardently defended itself against assertions regarding its affiliations with China. The company argues that US user data is stored securely on Oracle-operated cloud servers, with moderation decisions made locally—an assertion that has not entirely quelled the skepticism among lawmakers and the public alike.
As the drama surrounding TikTok continues to unfold, one thing remains clear: A blend of technology, finance, and geopolitics is at play, setting the stage for a potential pivot in how American social media interacts on a global scale.
Report By Axadle Desktop
