Oracle and Microsoft in Talks to Acquire TikTok, ByteDance May Retain Minority Stake
Negotiations are underway involving Oracle, Microsoft, and TikTok’s parent company, ByteDance, as efforts continue to address national security concerns while preserving TikTok’s U.S. operations. Sources close to the discussions revealed that the proposed deal could see ByteDance retain a minority stake in the company, with Oracle playing a key oversight role.
Under the proposed arrangement, Oracle would oversee TikTok’s algorithms, data collection, and software updates, leveraging its existing role in managing the app’s web infrastructure. This setup aims to alleviate concerns about Chinese ownership and ensure TikTok’s compliance with U.S. security requirements.
Microsoft is also reported to be exploring a potential investment in the app, joining Oracle and a consortium of investors in discussions valued at tens of billions of dollars. ByteDance, however, reportedly values TikTok’s global operations at over $200 billion, a figure that exceeds the financial reach of the interested investor groups.
In a significant shift, Chinese regulators—previously resistant to selling TikTok—may now allow the ownership changes. This development has been interpreted by U.S. negotiators as an opening to finalize a deal granting American investors majority control of the platform.
National security concerns remain a focal point of the negotiations, with U.S. officials emphasizing the need to eliminate any potential backdoors for Chinese access. Congressional staffers involved in the talks are pushing for binding legal agreements to prevent ByteDance from exerting operational control over the app.
The discussions are also addressing logistical and technical challenges, such as auditing algorithms and ensuring data security, which experts say are difficult to conclusively resolve.
The negotiations follow the failure of a previous initiative, Project Texas, which sought to guarantee TikTok’s independence from ByteDance. The Biden administration has since backed legislative efforts to mandate a ByteDance divestiture or risk a U.S. ban on the platform.
As talks continue, TikTok remains unavailable for new downloads on Apple and Google app stores, further complicating its operational challenges in the U.S. The outcome of the negotiations will likely determine the future of one of the world’s most popular social media platforms in the American market.
