The Trump administration is actively negotiating a complex deal that could reshape the ownership of the popular social media app, TikTok. The proposed arrangement suggests Oracle, a major American corporation, would take control of TikTok's global operations. In a surprising twist, ByteDance, TikTok's Chinese parent company, would retain a minority stake. This development follows the passage of a law last year that required ByteDance to either sell TikTok or face a ban in the United States.
In an effort to prevent a potential ban, TikTok briefly went dark before the law took effect on January 20. Subsequently, former President Donald Trump issued an executive order delaying the ban. Trump has since expressed his openness to high-profile figures like Elon Musk or Larry Ellison potentially acquiring TikTok. The current negotiation outlines a joint venture in which new U.S. investors would join Oracle in taking over TikTok.
"A joint venture between the current owners and/or new owners whereby the U.S. gets a 50% ownership." – Donald Trump
Some senators who previously supported the ban-or-sell bill are reportedly puzzled by Trump's evolving plans. They argue that the law clearly mandates ByteDance to fully divest itself of TikTok. This confusion highlights the tension surrounding the future of the app, which has been under scrutiny due to national security concerns over its Chinese ownership.
Oracle's involvement in this potential deal is not new. During Trump's first term, he attempted to force TikTok to sell, with Oracle emerging as a potential buyer. Since then, TikTok has shifted all its U.S. traffic to Oracle's servers as part of their operational strategy.
The proposed deal would see Oracle not only managing TikTok's global operations but also partnering with new U.S. investors to secure a majority stake. This arrangement aims to address security concerns while allowing ByteDance to maintain a minority position.
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