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The US government is reportedly in talks with Oracle and other American investors to reach a deal to transfer the ownership of TikTok’s US operations. This comes after the law that compelled ByteDance, the Chinese owner of TikTok, to sell the app to avoid a ban in the US. BytDance’s compliance with the law has been put on hold by an executive order signed by the former President Trump allowing negotiations to go on.
The deal under consideration proposes that Oracle will manage TikTok’s operations worldwide, with ByteDance remaining the minority shareholder. Oracle already has ties to TikTok as a cloud infrastructure provider, hosting U.S. user data since 2020. Trump’s earlier attempts to force a sale to Oracle in his first term were stalled by legal challenges. However, the renewed focus on national security and data privacy concerns has reignited discussions.
Some of the famous individuals and organizations have shown their interest in purchasing TikTok. Trump has mentioned Elon Musk and Oracle Chairman Larry Ellison as the possible buyers. Among these, Musk with his association with the social media platform X (formerly Twitter) has been identified as a potential contender owing to his vast resources and good relations with the Chinese government. However, there is a concern among experts that the acquisition may face antitrust issues.
Ellison, a Trump supporter, has been vocal on the issues of TikTok. Oracle was also involved in Walmart's 2020 attempts to acquire TikTok’s US operations. Ellison’s current involvement and Oracle’s existing infrastructure relationship with TikTok positions him as a key player in the negotiations.
Additionally, unconventional bids have emerged, including those from social media influencer MrBeast and “The People’s Bid for TikTok,” led by Frank McCourt and Kevin O’Leary. The parties involved in the acquisition have introduced innovative ideas including the integration of decentralized protocols to enhance platform transparency and user control.
Legal issues are still a major problem for any possible acquisition. Trump’s executive order delaying the TikTok ban conflicts with the Supreme Court’s ruling upholding the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA). This legislation mandates ByteDance’s divestiture to safeguard U.S. national security, and any deal must comply with its provisions.
China’s participation also poses a problem in the negotiations. ByteDance cannot divest without Beijing’s consent, and the current US-China trade talks could affect the decision. Analysts believe that given TikTok's estimated valuation of between $40 billion and $80 billion, potential buyers need to come up with huge amounts of funding.
