The White House is working on a new deal to restructure TikTok’s ownership. In this deal, ByteDance, TikTok’s Chinese owner, will keep a minority stake. Oracle, a US-based software company, will take control of TikTok’s algorithm, data collection, and software updates. Oracle already handles TikTok’s web infrastructure.
National Security Concerns Prompt Action
TikTok is widely popular in the US, with 170 million users. However, due to national security concerns, the app was briefly taken offline in January. The law requiring ByteDance to sell TikTok or face a ban took effect just before. This law was enacted after fears that TikTok could misuse American user data.
Oracle’s Role in Oversight
As part of the new deal, Oracle will monitor TikTok’s operations. A person involved in the talks said, “The goal is for Oracle to effectively monitor and provide oversight with what is going on with TikTok.” The deal also aims to reduce Chinese ownership of the app. While ByteDance would still own a stake, it would no longer have control over TikTok’s operations.
Investors and Deal Terms
In addition to Oracle, other potential investors like Microsoft are also involved. Oracle is interested in a stake worth “in the tens of billions.” Trump has said he wants the US to hold a 50% stake in a joint venture with TikTok.
TikTok Defends Its Operations
TikTok has responded to concerns about its ties to China. The company stated that user data is stored in the US on Oracle-operated cloud servers. It also clarified that content moderation decisions for American users are made in the US.
