Oracle and Microsoft are reportedly in discussions to acquire TikTok’s global operations, according to a National Public Radio (NPR) report. This potential deal aims to address security concerns linked to TikTok’s Chinese parent company, ByteDance, by significantly reducing its ownership in the app.
As per the report, the proposed agreement would allow ByteDance to retain a minor stake in TikTok. However, Oracle would assume responsibility for critical functions, including data management, software updates, and the app’s algorithm oversight. Oracle, which already provides much of TikTok’s online infrastructure, would also ensure ByteDance does not maintain any hidden control, the NPR report stated, citing two anonymous sources familiar with the negotiations.
Microsoft is also part of the ongoing discussions, though its exact role remains uncertain. ByteDance values TikTok at over $200 billion, making this a high-stakes and potentially expensive deal, according to NPR.
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This development follows previous efforts by the U.S. government to compel ByteDance to relinquish control of TikTok amid fears that the app could grant the Chinese government access to American user data. While no final decision has been reached, the renewed talks signal a concentrated push to secure TikTok’s operations in the U.S.
For Oracle and Microsoft, the acquisition represents a significant business opportunity. Meanwhile, TikTok stands to benefit by aligning with U.S. security expectations. Details of the agreement are still under negotiation, with input from the White House and other stakeholders, NPR added.
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