In a significant development, the Trump administration is reportedly formulating a plan to prevent a nationwide ban on TikTok, involving Oracle and a consortium of private investors.
Under the proposed arrangement, ByteDance, TikTok’s Chinese parent company, would retain a minority stake, while Oracle would oversee critical operations, including algorithm management, data collection, and software updates.
This structure would ensure that U.S.-based investors hold the majority stake in TikTok, addressing mounting national security concerns about potential Chinese government access to user data.
Although discussions are ongoing and terms remain fluid, sources close to the negotiations highlight Oracle’s role as pivotal in mitigating risks.
“The goal is for Oracle to effectively monitor and provide oversight,” said one source familiar with the talks.
ByteDance’s minimal stake would ease fears about Chinese control, though binding agreements to fully sever operational ties are still under debate.
Microsoft and other tech giants are reportedly engaged in the bidding process, but Walmart, which had previously shown interest, has pulled back after concerns over TikTok’s estimated valuation, which is believed to be at least $200 billion.
President Trump’s executive order has paused TikTok’s ban temporarily, but the urgency to finalize the deal stems from TikTok’s missed deadline for divestiture under U.S. law, initially set for January 19, 2025.
Congressional and Public Scrutiny
TikTok’s path forward hinges on appeasing Congress, which is demanding safeguards to prevent covert data access by ByteDance.
The Supreme Court recently upheld legislative measures for “qualified divestiture,” requiring ByteDance to relinquish majority control to maintain TikTok’s operations in the United States.
However, ByteDance’s earlier legal challenges delayed compliance, prompting the need for President Trump’s 75-day extension order.
A congressional staffer emphasized the importance of eliminating what lawmakers describe as “backdoors” in TikTok’s operations.
“Demonstrating the absence of Chinese control is critical,” the staffer noted, underscoring the lawmakers’ skepticism.
This concern is rooted in longstanding fears within the technology and foreign policy sectors, where even a full audit of TikTok’s code does not conclusively eliminate the possibility of hidden vulnerabilities.
Geopolitical Implications and Beijing’s Stance
Meanwhile, TikTok’s operational challenges persist. Apple and Google have yet to restore TikTok to their app stores, effectively blocking updates and new downloads.
According to the research, the companies cite risks of significant fines under U.S. law for supporting a ByteDance-controlled platform, despite Oracle resuming its web infrastructure services.
As Oracle and the White House inch closer to a resolution, critical questions remain about TikTok’s valuation, the extent of U.S. government oversight, and how this deal might impact the global tech landscape’s future.
For now, the stakes remain high for all parties navigating the intersection of technology, politics, and international relations.
Are you from SOC/DFIR Teams? –Â Analyse Malware Files & Links with ANY.RUN Sandox ->Â Try for Free
