Oracle Eyes TikTok Deal with US Investors Amid Ban Pressure
Several U.S.-based investors currently holding stakes in TikTok’s Chinese parent company, ByteDance, are reportedly considering joining Oracle in a proposed agreement to acquire the video-sharing application. This move aims to address national security concerns and circumvent a potential ban.
Investor Consortium Seeks Majority Stake
Investment firms including General Atlantic, Susquehanna, KKR, and Coatue are exploring the possibility of “acquiring additional stakes” in a restructured U.S. TikTok entity, according to a report in The Financial Times. The report cited multiple sources familiar with the ongoing discussions.
These firms are reportedly aiming to buy out Chinese investors as part of the deal, sources indicated.
Oracle’s Role in Data Security
Oracle, already a significant cloud-computing partner for TikTok, is expected to acquire an ownership stake in the U.S. business. A primary focus of Oracle’s involvement would be to ensure the security of data belonging to TikTok’s over 170 million American users. This measure is central to the deal supported by President Trump.
ByteDance, based in China, intends to retain a stake in a revamped TikTok U.S. operation, according to one source.
Congressional Scrutiny Remains
However, ByteDance’s continued ownership could present a challenge with Congress. Lawmakers have previously mandated divestiture by ByteDance to mitigate potential exploitation of the app by the Chinese Communist Party.
Representatives from the White House, TikTok, General Atlantic, Susquehanna, and Coatue have not yet responded to requests for comment on the report. KKR declined to issue a statement.
Deadline Looms for TikTok Resolution
President Trump has set an April 5 deadline to finalize a sale for TikTok. This timeline follows an executive order issued after his return to the White House, which extended the enforcement of Congress’s ban by 75 days.
A previous Congressional ban briefly went into effect after ByteDance missed the January 19 divestment deadline.
Congress and the Justice Department have asserted that TikTok, under the leadership of CEO Shou Zi Chew, functions as a tool of the Chinese Communist Party. They allege the app can be used for espionage against American users and to subtly manipulate public opinion through its content recommendation algorithm. TikTok has refuted these accusations.
Trump Seeks US Control
President Trump has publicly stated his desire to “save” TikTok and expressed interest in the U.S. securing a 50% ownership stake in the application. Beyond U.S. approval, any agreement would require authorization from China, which has indicated its unwillingness to relinquish control over TikTok’s recommendation algorithm.
Oracle is reportedly positioned to play a prominent role in any potential TikTok transaction.
Previously, Oracle collaborated with ByteDance on “Project Texas.” This initiative was unsuccessful in convincing Congress of TikTok’s safety, despite storing American user data on Oracle’s U.S.-based servers.
Under the prospective arrangement involving U.S. investors, Oracle would reiterate its commitment to ensuring the app’s security. However, ByteDance would reportedly retain oversight of its algorithm, according to the Financial Times.
JD Vance Leading Deal Talks
Vice President JD Vance has been appointed by President Trump to lead discussions regarding a potential deal. The President recently mentioned that his administration is in talks with “four different groups” expressing interest in TikTok.
The President has also advocated for the involvement of Larry Ellison and Oracle in any agreement.
Bill Ford, CEO of General Atlantic and a ByteDance board member, suggested in January that solutions “short of divestiture” might satisfy U.S. regulators.
Congressional Opposition a Hurdle
The Trump administration may face significant challenges in persuading Congress to accept a deal if ByteDance maintains operational involvement with TikTok.
Senator Tom Cotton, head of the Senate Intel Committee, is a key obstacle, as reported by The Post’s “On The Money” earlier this week.
Senator Cotton has conveyed to Trump administration officials that he will not endorse any agreement failing to fully comply with the law. The law mandates complete divestment of Chinese control and ownership of TikTok.