In a significant development, the Trump administration is orchestrating negotiations for Oracle and Microsoft to take control of TikTok‘s global operations, marking the ongoing saga of the popular social media platform’s ownership structure.
The proposed deal would allow ByteDance, TikTok’s Chinese parent company, to retain a minority stake while transferring operational control to Oracle, with Microsoft joining as part of an investor group. According to reports from NPR, Oracle would oversee the app’s algorithm, data collection, and software updates, effectively becoming TikTok’s primary technical supervisor.
This latest development follows a complex history of efforts to address national security concerns surrounding TikTok’s Chinese ownership. During his first term, President Trump initiated efforts to force ByteDance to sell TikTok’s U.S. operations, leading to Oracle’s emergence as a potential buyer. While that deal didn’t materialize, it resulted in TikTok routing its U.S. traffic through Oracle’s servers, a relationship that continues today.
The current negotiations arise from recent legislation requiring ByteDance to either sell the app or face a U.S. ban. However, President Trump’s recent executive order has delayed any enforcement action for 75 days, providing a window for these negotiations to proceed.
Key aspects of the proposed deal include:
• Oracle’s expanded role in monitoring and providing oversight of TikTok’s operations
• Microsoft’s participation as part of an investor group
• ByteDance maintaining a minority ownership position
• Implementation of new data security measures
The involvement of multiple U.S. technology companies represents a shift from previous attempts to resolve TikTok’s ownership status. Notably absent from the current negotiations is Walmart, which was part of earlier discussions but has reportedly withdrawn due to concerns over the platform’s valuation.
Several senators who supported the original ban-or-sell legislation have expressed reservations about the proposed structure, particularly regarding ByteDance’s continued involvement. The law’s requirement for complete divestment appears to conflict with the current proposal’s allowance for minority ownership.
The deal’s implications extend beyond U.S. borders, as it would affect TikTok’s global operations. This broader scope distinguishes the current negotiations from previous attempts that focused primarily on U.S. operations.
While President Trump has previously suggested alternative scenarios, including a “joint venture” with 50% U.S. ownership, the current negotiations appear to be moving in a different direction. The administration’s willingness to consider various ownership structures indicates a flexible approach to addressing national security concerns while maintaining TikTok’s operational continuity.
As negotiations continue, the focus remains on establishing a framework that satisfies both national security requirements and the practical considerations of operating a global social media platform. The outcome of these talks could set precedents for how similar situations involving foreign-owned technology companies are handled in the future.
Representatives from Oracle, Microsoft, TikTok, and the White House have not yet provided official comments on the ongoing negotiations.
