The Trump administration is actively negotiating a potential deal for Oracle to assume control of TikTok's global operations, with significant changes proposed to the app's ownership structure. Under the current terms, Oracle would lead the acquisition, with new U.S. investors joining the fray. ByteDance, TikTok's parent company, would retain only a minority stake. Meanwhile, former President Donald Trump has suggested Elon Musk or Larry Ellison as potential buyers, emphasizing a desire for increased American control over the app.
In recent developments, Trump proposed that the U.S. should secure a 50% ownership stake in TikTok as part of the agreement. This move aims to address national security concerns and maintain American oversight. The suggestion highlighted his administration's ongoing efforts to reshape the platform's ownership during his first term.
"a joint venture between the current owners and/or new owners whereby the U.S. gets a 50% ownership." – Donald Trump
Oracle's involvement with TikTok is not new. During Trump's tenure, Oracle surfaced as a contender to acquire TikTok, especially after lawmakers passed a bill compelling ByteDance to either sell the app or face a ban in the United States. This legislation required ByteDance to divest entirely from TikTok, necessitating swift action to comply. As a precaution, TikTok redirected all its U.S. traffic through Oracle servers, fortifying its ties with the tech giant.
Despite these maneuvers, some senators who backed the sell-or-ban measure have expressed bewilderment over Trump's evolving strategy. The former president had initially issued an executive order postponing the ban on TikTok, which was scheduled to take effect on January 20. The app experienced a brief shutdown before this law's enforcement deadline.
The negotiations reflect an ongoing effort to secure American interests in key digital platforms, heralding significant changes for TikTok's global operations. While Oracle's potential leadership in this acquisition could reshape the app's future, it underscores the broader geopolitical tensions surrounding technology and data sovereignty.
Leave a Reply