White House Negotiates Oracle, US Investors to Take Over TikTok

A National Security Move That Balances US Oversight with ByteDance Involvement

The White House is in active discussions to structure a deal where Oracle and a coalition of US investors will assume control of TikTok. This proposed arrangement aims to mitigate national security risks while ensuring that TikTok’s operations and data management align with American oversight standards.

Oracle at the Helm

According to National Public Radio (NPR), Oracle is expected to play a pivotal role in managing TikTok’s algorithm, data collection practices, and software updates. This oversight is critical in addressing concerns about data privacy and foreign influence. The proposed arrangement signifies a strategic shift in ensuring that sensitive user data remains under American control.

ByteDance’s Minority Stake

While the deal would transfer majority ownership to US investors, TikTok’s parent company, ByteDance, would retain a minority stake. This dual ownership approach seeks to balance operational continuity with a reduction in Chinese influence. Microsoft has also been named as a potential investor in the deal, further strengthening US involvement.

Backdrop of the Negotiations

These discussions follow a legislative mandate requiring TikTok’s sale by its Chinese owner to prevent a nationwide ban. Enacted on January 19, the law came with a 75-day delay, signed into effect by President Donald Trump. The urgency of these negotiations underscores the app’s massive influence, with over 170 million American users.

Temporary Shutdown and Data Management

Before the law took effect, TikTok experienced a temporary shutdown for US users. Currently, Oracle manages TikTok’s data storage on American cloud servers, while content moderation decisions are handled domestically. This existing framework provides a foundation for the proposed takeover.

Key Details from the Talks

A source close to the discussions revealed that “Oracle’s role will be to monitor TikTok’s activities and ensure compliance with US data governance standards. While ByteDance remains a stakeholder, their operational influence would be significantly reduced.”

Oracle and White House officials met last Friday to deliberate on the deal’s specifics. A follow-up meeting is scheduled next week, with Oracle reportedly eyeing a valuation for TikTok in the tens of billions of dollars. However, finer details of the agreement remain unresolved.

Political and Free Speech Challenges

President Trump has advocated for the US to secure a 50% ownership stake in TikTok’s new structure. Despite this push, Congressional approval remains a significant hurdle. Critics, including free speech advocates, argue that the app’s alleged ties to China have been overstated, calling for a more nuanced approach to regulation.

Public Opinion Matters

This proposed deal represents a complex balancing act between safeguarding national security and addressing the app’s widespread popularity. With its user base relying on the platform for creativity, community, and commerce, the outcome of these negotiations will have far-reaching implications.

What’s your take on the White House’s approach to TikTok? Share your thoughts in the comments below!

Sam Smith