The acquisition would bring TikTok’s U.S. operations under Oracle’s control and revive earlier plans for a 2020 deal with Oracle.
So say sources at NPR. Under President Donald Trump’s new administration, a deal between China’s ByteDance, the parent company of TikTok, and U.S. technology company Oracle is being reconsidered. A possible acquisition stems from lingering concerns about national security and the protection of U.S. user data. TikTok is originally Chinese.
Tip: Oracle: stop, think and acquire something other than TikTok
Oracle is seen as a trusted tech partner to which the U.S. government entrusts the management of TikTok’s U.S. user data. Oracle will oversee data collection, algorithm, and software updates if a deal is reached. Currently, Oracle already provides a sizable portion of TikTok’s IT infrastructure.
There is even talk of a deal that would leave TikTok parent ByteDance with a minority stake. The deal is said to involve other U.S. investors in addition to Oracle. “The goal is for Oracle to effectively monitor and provide oversight with what is going on with TikTok,” one source stated. “ByteDance wouldn’t completely go away, but it would minimize Chinese ownership.”
Political and technological challenges
The potential deal’s resurgence occurs during rising tensions between the U.S. and China on technology issues. It reflects broader concerns about the impact of technology on national security and privacy. As negotiations continue, the future of TikTok in the United States remains uncertain. The outcome will affect its 150 million U.S. users.