Trump Administration in Talks for Oracle to Acquire TikTok: What It Means for the Future

The ongoing negotiations surrounding TikTok have garnered significant attention, particularly with reports indicating that the Trump administration is facilitating a potential acquisition of the popular app by Oracle, along with new U.S. investors. This potential deal comes in the wake of lawmakers implementing legislation aimed at addressing national security concerns regarding the app’s Chinese parent company, ByteDance.

Background on TikTok’s Ownership Controversy

Last year, U.S. lawmakers passed legislation that compelled ByteDance to either divest from TikTok or face a ban in the United States. In an attempt to avert this situation, the app temporarily went offline before the law took effect on January 20. However, incoming President Donald Trump intervened by proposing an executive order to delay the ban.

Trump’s Vision for TikTok’s Future

During his initial discussions about TikTok, Trump suggested a joint venture model, where the U.S. would hold a 50% stake by partnering with current and/or new owners of the app. Recent reports from NPR indicate that negotiations are progressing, with Oracle potentially taking charge of TikTok’s global operations while ByteDance maintains a minority interest.

Oracle’s Role in TikTok’s Acquisition

Notably, Trump had previously attempted to facilitate a sale of TikTok during his first term, with Oracle identified as a viable buyer. While that acquisition did not materialize, TikTok later announced the migration of its U.S. data traffic to Oracle’s servers. At a recent press conference, Trump expressed his openness to either Elon Musk or Oracle chairman Larry Ellison taking ownership of the app.

Legislative Confusion Among Senators

Despite the ongoing negotiations, some senators who supported the initial ban-or-sell legislation have voiced concerns and confusion regarding Trump’s plans. They emphasize that the current law mandates full divestiture by ByteDance. This divergence in perspectives raises questions about the future ownership structure of TikTok.

• Key Points Regarding TikTok’s Ownership:
  • Trump’s administration is negotiating a potential deal involving Oracle.
  • ByteDance may retain a minority stake in TikTok.
  • Legislation mandates ByteDance to divest fully from TikTok.
  • Oracle has already begun managing U.S. traffic for TikTok.

As the situation continues to evolve, stakeholders, including lawmakers and potential investors, are closely monitoring developments. For more information on TikTok and its ownership challenges, consider visiting our TikTok news updates page.