Oracle and Microsoft in Talks to Acquire TikTok’s Global Operations
In a significant development in the tech industry, Oracle and a group of investors, including Microsoft, are reportedly in discussions to acquire TikTok’s global operations. The White House is said to be actively involved in negotiating the deal, which could reshape the landscape of social media platforms worldwide.
Under the proposed agreement, ByteDance, TikTok’s parent company, would retain a minority stake in the popular video-sharing app. Oracle, a key player in the negotiations, is poised to take on a crucial role in overseeing TikTok’s algorithm, data collection, and software updates.
The potential deal comes as no surprise to industry insiders, given that Oracle’s server network already supports much of TikTok’s infrastructure. If the agreement moves forward, Oracle would be tasked with monitoring and providing oversight of TikTok’s operations, a move aimed at reducing Chinese ownership influence over the platform.
While Microsoft’s specific role in the talks remains unclear, the tech giant’s involvement is noteworthy. This isn’t Microsoft’s first foray into TikTok acquisition discussions; the company was previously involved in a 2020 bid alongside Oracle and Walmart. However, Microsoft co-founder Bill Gates had described that earlier attempt as a “poison[ed] chalice.”
Interestingly, Walmart, which was part of the 2020 bid, is reportedly not involved in the current talks. Sources suggest the retail giant withdrew due to concerns over TikTok’s estimated price tag.
The ongoing negotiations are set against a complex political and regulatory backdrop. They follow an executive order from President Trump that granted TikTok a 75-day reprieve from enforcement actions. Previously, Trump had suggested a joint venture with 50 percent US ownership of TikTok.
As the talks progress, the tech industry and policymakers alike are closely watching the outcome. The potential acquisition could have far-reaching implications for data privacy, international tech relations, and the future of social media platforms.
Oracle, Microsoft, TikTok, and the White House have been approached for comment, but have not yet responded to requests for statements regarding the ongoing negotiations.