Oracle and Microsoft in Talks to Acquire TikTok's Global Operations

Oracle and Microsoft in Talks to Acquire TikTok’s Global Operations

Recent reports from NPR indicate that Oracle, alongside a consortium of investors that includes Microsoft, is engaged in negotiations to take over the global operations of the popular social media platform, TikTok. This development has emerged amidst ongoing discussions and regulatory considerations surrounding foreign ownership of American companies.

The Proposed Deal

Under the potential agreement, which appears to have the backing of the White House, ByteDance—the current owner of TikTok—would retain a minority stake in the app. However, its operational oversight, particularly concerning the app’s algorithm, data collection practices, and software updates, would shift to Oracle.

Oracle’s Role in TikTok’s Infrastructure

Oracle’s existing server network is already integral to TikTok’s functionality, providing much of its technical backbone. The new arrangement would allow Oracle to monitor and offer oversight on TikTok’s operations, according to anonymous sources familiar with the negotiations. This strategy aims to minimize Chinese ownership influence, addressing concerns raised by U.S. lawmakers.

Microsoft's Involvement

While Microsoft's exact role remains unresolved, reports suggest that the tech giant is engaged in discussions about the deal. Microsoft, in collaboration with Oracle and Walmart, previously attempted to acquire TikTok in 2020, an effort that Bill Gates famously described as a "poisoned chalice." Notably, Walmart has opted out of involvement this time, reportedly due to apprehension about the estimated purchase price of the app.

Political Context and Executive Orders

This news comes on the heels of significant political maneuvers, particularly an executive order issued by President Trump. The order granted TikTok and similar entities a 75-day grace period from enforcement actions tied to the requirement for ByteDance to divest its interests in TikTok. Trump had previously suggested the possibility of a "joint venture," wherein the U.S. government would hold a 50% stake in TikTok, raising questions about the future structure of the app and its leadership.

Next Steps and Community Impact

As discussions continue, we have reached out for comments from Oracle, Microsoft, TikTok, and the White House to gain further insights into the specifics of the negotiations and the implications for TikTok’s users and stakeholders.

Conclusion

The potential acquisition of TikTok’s global operations by Oracle and its investors marks a significant shift in the landscape of social media ownership, particularly considering the heightened scrutiny of foreign investments in American technology companies. Updates on this developing story will be key for users and investors alike as the digital world adapts to changing ownership and governance structures.