Oracle and a group of investors that includes Microsoft are in talks to take over TikTok’s global operations, reports NPR. The deal, which the White House is reportedly negotiating, would see ByteDance keeping a minority stake in TikTok while “the app’s algorithm, data collection and software updates will be overseen by Oracle.”
Oracle’s server network already provides the bulk of TikTok’s backbone, and under the deal, the company would “effectively monitor and provide oversight with what is going on with TikTok,” according to one of NPR’s anonymous sources, who added that the agreement’s goal is to “minimize Chinese ownership.”
Microsoft’s reported involvement isn’t clear beyond that it is “engaged in the talks.” The company was also in the mix with Oracle and Walmart in a 2020 bid to take over TikTok that Microsoft co-founder Bill Gates had called “a poison[ed] chalice.” Walmart reportedly isn’t involved this time around “after balking at the estimated price” of the app.
News of the talks comes after President Trump issued an executive order giving TikTok and others a 75-day reprieve from any enforcement action related to the United States’ requirement that ByteDance divest from TikTok. Trump had previously floated the possibility of a “joint venture” in which the US owns 50 percent of the company.
We’ve reached out to Oracle, Microsoft, TikTok, and the White House for comment.