Potential New Tiktok Owners?

Oracle and Microsoft are reportedly engaged in talks to acquire TikTok's global operations, according to US- based NPR (National Public Radio). This development comes amidst a backdrop of political pressure and shifting stances regarding the app's future in the United States.

The proposed deal would involve ByteDance, TikTok's parent company, retaining a minority stake, while Oracle would take the lead in overseeing the app's algorithm, data collection, and software updates. NPR reports that the White House is involved in negotiating the deal, although President Trump later denied direct collaboration with Oracle. He did however acknowledge speaking with numerous interested parties regarding a potential acquisition of TikTok, stating a decision would likely be made within the next month.

Other parties reportedly interested in acquiring TikTok include Elon Musk, real estate billionaire Frank McCourt, and Shark Tank personality Kevin O’Leary. President Trump had previously expressed a preference for Oracle co-founder Larry Ellison to purchase the platform.

Oracle already plays a significant role in TikTok's infrastructure, providing a large portion of its server network. A potential acquisition could see Oracle significantly enhance its involvement, "effectively monitoring and providing oversight with what is going on with TikTok," according to an NPR source who wished to remain anonymous. The source also indicated that a key objective of the agreement is to "minimize Chinese ownership" of the platform.

Microsoft's reported role in the discussions remains less clear, described only as being "engaged in the talks." Microsoft was also involved, along with Oracle and Walmart, in a previous attempt to take over TikTok in 2020, which Microsoft co-founder Bill Gates famously described as a "poisoned chalice." Walmart is reportedly not participating in the current negotiations due to concerns about the app's valuation.

This news follows an executive order granting TikTok and other companies a 75-day reprieve from enforcement actions related to requirements for ByteDance to divest from TikTok in the US. The president had earlier suggested the possibility of a "joint venture" with the US owning 50% of the company.
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Microsoft has declined to comment on the reports. Reaching out to Oracle, TikTok, and the White House for comment did not immediately result in a response. This potential acquisition highlights the complex intersection of technology, business, and international politics surrounding TikTok and its future.

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