Trump Is Working Out A Microsoft TikTok Buyout: Here’s What You Need To Know

Oracle and Microsoft are in talks with the White House to acquire TikTok’s U.S. operations, as data privacy concerns continue to mount against the Chinese-owned app.

At a Glance

  • The Trump administration is collaborating with Oracle and investors to acquire TikTok’s global operations
  • A new ban was implemented at the end of Biden’s term, taking TikTok offline in the US unless sold by ByteDance
  • Oracle would take a minority stake and oversee TikTok’s algorithm, data, and software
  • Congress passed a divest-or-ban measure, giving ByteDance until January 19 to divest
  • Chinese regulators have signaled they may not block a TikTok ownership change

White House Engages with Tech Giants

The Trump administration has entered into discussions with Oracle and Microsoft regarding the potential acquisition of TikTok’s global operations. This move comes as a response to growing concerns over data privacy and national security risks associated with the popular Chinese-owned social media platform. Oracle, which has been TikTok’s U.S. cloud provider since 2022, has held meetings with White House officials to explore a possible deal.

The situation has evolved rapidly, with a new ban implemented at the end of President Biden’s term that would take TikTok offline in the United States unless ByteDance, its parent company, sells the app. In response, former President Trump signed an executive order to delay the ban by 75 days, aiming to “save” the app, though the legality of this action remains uncertain.

The current deal under discussion would see Oracle take a minority stake in TikTok, with ByteDance retaining a minority stake as well. Crucially, Oracle would be tasked with overseeing the app’s algorithm, data, and software, addressing key concerns about data privacy and potential Chinese government influence.

“The goal is for Oracle to effectively monitor and provide oversight with what is going on with TikTok,” a person directly involved in the talks said.

This arrangement aims to minimize Chinese ownership and appease Congress, which has mandated that TikTok divest from ByteDance to continue operating in the U.S. The stakes are high, with ByteDance valuing TikTok at a staggering $200 billion or more.

Congressional Concerns and Approval

For any deal to move forward, it must gain congressional approval. A key factor in this process is ensuring that ByteDance cannot manipulate TikTok in any way. Lawmakers remain concerned about the potential for Chinese authorities to access TikTok’s data and algorithm, despite previous attempts to address these issues.

“A key part is showing there is no operational relationship with ByteDance, that they do not have control,” a Congressional staffer explained.

The failure of a previous national security plan, known as Project Texas, to guarantee TikTok’s independence from ByteDance has only heightened these concerns. As a result, Congress passed a divest-or-ban measure, giving ByteDance until January 19 to divest its interests in TikTok.

As negotiations continue, the future of TikTok in the United States remains uncertain. While Oracle has restored TikTok’s services, trusting in Trump’s political assurances, tech giants Apple and Google have yet to reinstate the app in their respective app stores. This cautious approach underscores the complex nature of the situation and the high stakes involved for all parties.

If Trump pulls this off, it almost seems like a shame that he can’t run for the White House again – because there’s no way he wouldn’t get the youth vote!