Oracle, Microsoft in talks to acquire TikTok’s global operations, ByteDance to retain minority stake

Oracle and a consortium of investors, including Microsoft, are reportedly in advanced discussions to acquire TikTok’s global operations, according to NPR. The proposed deal would allow ByteDance, TikTok’s Chinese parent company, to retain a minority stake while Oracle oversees critical aspects like algorithm management, data collection, and software updates.

While the White House is said to be negotiating the deal, former President Donald Trump has denied any direct involvement with Oracle. “I have spoken to many people about TikTok, and there is great interest in it,” Trump told reporters during a flight to Florida on Saturday, according to Reuters. However, he clarified, “No, not with Oracle. Numerous people are talking to me, very substantial people, about buying it, and I will make that decision probably over the next 30 days.”

In addition to Oracle, other names reportedly interested in acquiring TikTok include Tesla CEO Elon Musk, real estate mogul Frank McCourt, and “Shark Tank” host Kevin O’Leary. Trump had previously expressed his preference for Oracle co-founder Larry Ellison to lead the acquisition.

Microsoft’s involvement in the current discussions remains somewhat unclear, but it is reportedly “engaged in talks.” This follows the company’s 2020 attempt to acquire TikTok alongside Oracle and Walmart, which Microsoft co-founder Bill Gates described as “a poisoned chalice.” Walmart is not part of the current discussions, reportedly due to concerns over the app’s valuation.

Oracle already provides much of TikTok’s server infrastructure, making it a natural candidate to oversee the app’s data management and algorithm operations. NPR sources claim the goal of the deal is to “minimise Chinese ownership,” thereby addressing national security concerns raised by U.S. lawmakers about TikTok’s ties to Beijing.

An NPR report noted that the potential agreement could allow Oracle to “monitor and provide oversight” of TikTok’s activities, ensuring compliance with U.S. regulations and reducing the risk of data being accessed by Chinese authorities.

The negotiations come amid an executive order issued by Trump, granting TikTok a 75-day grace period before enforcement of a U.S. requirement for ByteDance to divest from TikTok. Trump has previously floated the idea of a “joint venture” where the U.S. government or American companies could own 50% of the platform.

The restructuring of TikTok’s ownership is being closely watched due to its implications for U.S.-China relations and the tech industry.