the staff of the Ridgewood blog
New York NY, U.S. President Donald Trump announced ongoing discussions regarding TikTok’s future, with a decision likely to be reached within the next 30 days. Speaking aboard Air Force One during a flight to Florida, Trump said, “I have spoken to many people about TikTok, and there is great interest in TikTok.”
The popular video-sharing app, owned by China-based ByteDance, faces mounting scrutiny over national security concerns. Here’s the latest on the discussions and potential deal-making.
Talks of a Deal with Oracle and Investors
According to sources, the Trump administration is exploring a plan involving Oracle and a consortium of investors to take control of TikTok’s operations in the U.S. Under this proposal:
- ByteDance’s Role: ByteDance would retain a minority stake in TikTok.
- Oracle’s Role: Oracle, which already powers TikTok’s U.S. infrastructure, would manage data collection and software updates to address national security concerns.
Trump clarified that while Oracle has been mentioned in these discussions, he has not personally spoken to Larry Ellison, Oracle’s co-founder, about acquiring TikTok. He also noted, “Numerous people are talking to me, very substantial people, about buying it.”
Key Players and Stakeholders
The deal involves significant investors, including:
- U.S.-Based Backers: ByteDance’s U.S. investors like Susquehanna International Group, General Atlantic, KKR, and Sequoia Capital may participate in the deal.
- Other Contenders: Investor groups led by Frank McCourt and YouTube star Jimmy Donaldson (Mr. Beast) are reportedly not part of the Oracle discussions.
National Public Radio (NPR) reported that Oracle is interested in acquiring a stake in TikTok valued at “tens of billions,” though the full scope of the deal remains fluid.
National Security Concerns and TikTok’s U.S. Operations
National security remains at the forefront of these negotiations. U.S. officials fear ByteDance’s ownership could lead to the misuse of American user data by the Chinese government.
- Data Storage Agreement: TikTok previously partnered with Oracle in 2022 to store U.S. user data domestically, mitigating concerns about foreign interference.
- Executive Action: Trump delayed enforcing a law requiring TikTok’s sale on national security grounds by 75 days, allowing more time for negotiations.
Despite the scrutiny, TikTok’s management is expected to remain intact and continue operating the app, which boasts over 170 million U.S. users.
Opposition and Legal Challenges
Free speech advocates have opposed TikTok’s potential ban, arguing it could stifle creativity and expression. TikTok has consistently maintained that:
- U.S. user data is securely stored on Oracle-operated servers.
- Content moderation decisions for American users are made within the U.S.
Congress remains a significant hurdle for the White House, as lawmakers seek assurance that any deal aligns with national security interests.
Looking Ahead: A $50 Billion Joint Venture?
Trump has expressed interest in a potential joint venture, stating, “I would like the United States to have a 50% ownership position in a joint venture in TikTok.”
Officials from Oracle and the White House held preliminary meetings about the deal, with further discussions planned for the coming week.
Conclusion
As the deadline approaches, the fate of TikTok hangs in the balance. With multiple stakeholders and national security concerns at play, the outcome of these discussions could reshape the app’s future in the U.S.
