Oracle Emerges As Key Player In Potential Deal To Keep TikTok Operational In The US

As the deadline for temporary pause on the U.S. TikTok ban approaches, reports indicate that tech giant Oracle could play a key role in any potential deal to keep the app running.

Reports suggest that Oracle is the top choice to manage TikTok, with its parent company ByteDance supporting the idea, tech-focused outlet The Information posted on X.

One of the major points in the negotiations is whether TikTok's algorithm will be fully transferred to U.S. ownership, Politico reported.

Sources familiar with the matter said that Oracle was being brought in this week to discuss a potential solution, with the company possibly managing American user data and preventing the Chinese government from accessing it.

However, experts warn that it may be impossible to fully guarantee that the Chinese government won't have a way to access that data.

Despite ongoing talks, concerns about TikTok's connections to China persist. Critics argue that allowing ByteDance to maintain control over the app's technology could leave security issues unresolved.

Lawmakers, especially Republicans, fear the Chinese government could still access American user data, posing a national security risk.

"If the Oracle deal moves forward, you still have this [algorithm] controlled by the Chinese. That means all you are doing is saying 'trust Oracle' to disseminate the data and guarantee there is no 'back door' to the data," sources familiar with the matter said.

Order pausing TikTok ban ends on April 5

When President Donald Trump took office, he issued an executive order halting the federal ban on TikTok, which was set to expire on April 5.

Trump's order came after lawmakers moved to block the app from being hosted in the U.S. unless its Chinese parent company, ByteDance, sold its stake in the platform.

That order is set to end soon, leaving the U.S. government scrambling to figure out how to address national security concerns and ensure TikTok's continued operation.

Vice President J.D. Vance, who was leading talks about TikTok, mentioned in a recent interview that there was "almost certainly" going to be a deal by the April 5 deadline that will address these concerns and allow for an American-controlled version of TikTok.

"There will almost certainly be a high-level agreement that I think satisfies our national security concerns, allows there to be a distinct American TikTok enterprise," Vance told NBC News on Friday.

Vance hinted that while specific details about the negotiations and potential buyers remain unclear, some administrative issues could delay the final agreement. However, he expressed hope that the deal would be completed before the extension expires.

Chinese government has the final say

The Chinese government ultimately has the final say on whether ByteDance will sell TikTok or allow a U.S. company to license its use. Beijing is keen on preserving TikTok's exclusive access to user data and opposes any pressure from foreign governments that could force Chinese firms to comply with foreign demands.

Over the past year, both Chinese authorities and the Chinese embassy in Washington have avoided addressing the potential sale of TikTok to a non-Chinese company.

Chinese Commerce Ministry spokesperson Shu Jueting recently stated that the government would "firmly oppose" any forced sale of TikTok and would require ByteDance to get approval in line with Chinese regulations for any potential foreign ownership deal.

Chinese Foreign Ministry spokesperson Wang Wenbin also criticized the U.S. government's actions, accusing Congress of attempting to control the app through "hegemonic moves." While the Chinese government used more diplomatic language regarding a TikTok sale in January, it still provided no indication of whether it would approve such a deal.

TikTok's controversial ban in the U.S.

TikTok was banned in April 2024 after lawmakers from both parties raised alarms about the app's potential for surveillance and data misuse. Concerns ranged from accusations of TikTok spying on journalists to claims of promoting Chinese propaganda, reports Forbes.

TikTok has denied any wrongdoing.

While the government has yet to provide concrete evidence linking TikTok to any specific security threat, reports have highlighted various concerns, including data mishandling and surveillance activities.

The ban briefly went into effect before Trump's inauguration, but the Supreme Court later blocked it, and TikTok was quickly restored to app stores.

Trump's stance on TikTok has shifted over time. Though he initially pushed to ban the app, his recent actions suggest he was now more willing to work with the company to ensure its survival in the U.S., signaling a change in his approach.