Oracle and Microsoft Eye Potential Takeover of TikTok

Tristan Collins
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Oracle and Microsoft, along with a group of investors, are in detailed discussions to take control of TikTok’s global operations.

This strategic move comes amid ongoing concerns about data privacy and the influence of ByteDance, TikTok’s parent company based in China.

The talks, steered by the Trump administration, aim to significantly reduce ByteDance’s stake in TikTok while handing over the management of key aspects such as the app’s algorithm, data collection, and software updates to Oracle.

Oracle, known for its robust server network, already plays a crucial role in supporting TikTok’s infrastructure, which will further empower them to oversee the app’s operations.

While Microsoft’s specific role in these negotiations remains somewhat ambiguous, their participation has been confirmed by sources close to the matter.

Notably, Walmart, which was part of a previous bid for TikTok in 2020 alongside Oracle, has opted out this time, deterred by the app’s steep valuation.

The White House is facilitating these discussions under an executive order issued by President Trump, which grants TikTok a temporary reprieve from any immediate divestiture actions.

This development follows legislative measures that demand TikTok sever its ties with ByteDance to continue its operations in the U.S. under a ‘qualified divestiture.’

A Congressional staffer revealed that ensuring TikTok operates independently of ByteDance is crucial to gain legislative approval.

The staffer emphasized the importance of establishing a structure that prevents any backdoor influence from China over TikTok’s operations.

As these negotiations progress, the overarching goal is to address national security concerns by eliminating potential avenues for Chinese authorities to access data from American users.

The challenge lies in proving that TikTok can operate without Chinese oversight, a complex issue given the intricacies of technology governance.

Meetings between Oracle officials and the White House are set to continue, signaling that both sides are eager to reach a resolution that aligns with U.S. national interests.

The outcome of these talks could lead to a transformative shift in how TikTok operates globally, ensuring it remains a favorite platform for millions while adhering to stringent U.S. regulations.

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Tristan has a strong interest in the intersection of artificial intelligence and creative expression. He has a background in computer science, and he enjoys exploring the ways in which AI can enhance and augment human creativity. In his writing, he often delves into the ways in which AI is being used to generate original works of fiction and poetry, as well as to analyze and understand patterns in existing texts.