TikTok, the globally popular short-form video app, is once again at the center of high-stakes negotiations as Oracle emerges as the frontrunner to take over its global operations. With White House backing, this potential deal could secure TikTok’s future in the U.S., where it’s currently banned from app stores. For millions of users and creators, this may finally end the years-long uncertainty over the app’s availability.
The app’s troubles began with a law passed during the Trump administration, requiring ByteDance, TikTok’s Chinese parent company, to sell its U.S. operations or face an outright ban. Although TikTok managed to delay the ban through executive orders and legal maneuvers, the Biden administration appears eager to resolve the issue.
According to reports from NPR, the current negotiations would see Oracle take control of TikTok’s global operations while ByteDance retains a minority stake. This structure would ensure U.S.-based ownership, addressing concerns over national security and data privacy that initially triggered calls for a ban. Unlike earlier proposals that split TikTok’s U.S. and international businesses, this deal envisions unified global operations under Oracle’s leadership.
Oracle has long been involved with TikTok, providing cloud infrastructure for its U.S. operations. This relationship positions Oracle as a logical candidate to take over, particularly since the tech giant showed interest during earlier acquisition talks in 2020. At the time, Oracle partnered with Walmart in a bid to acquire TikTok but ultimately failed to close the deal.
Challenges and Financial Hurdles
TikTok’s valuation presents a major hurdle. ByteDance reportedly seeks a valuation in the hundreds of billions of dollars—a figure that would challenge even the largest tech companies. Financing such a deal may require creative solutions, including potential government involvement. Former President Trump floated the idea of the U.S. government taking a stake in TikTok, effectively making it a partially nationalized entity. While this idea hasn’t gained traction under the current administration, it highlights the complex financial and political dimensions of the negotiations.
Current Impact on Users
For now, TikTok remains inaccessible to new users in the U.S. App Store and Google Play Store. Existing users can still use the app on their devices, but updates and new downloads are unavailable. This means anyone upgrading to a new phone cannot reinstall the app, creating a significant barrier for TikTok’s U.S. user base.
Outside the United States, TikTok continues to operate without restrictions, maintaining its dominance as a leading platform for short-form video content.
What’s Next?
The White House’s involvement signals the political weight behind these negotiations. Resolving TikTok’s ownership is not just a business decision; it’s a geopolitical balancing act involving U.S.-China relations, tech privacy, and national security. If Oracle and ByteDance can finalize an agreement, it will mark a pivotal moment in the history of social media and cross-border tech deals.
This evolving story underscores how political pressures and corporate interests intersect in today’s tech landscape. Whether Oracle becomes TikTok’s new owner or another solution emerges, the outcome will have far-reaching implications for the app’s future and its millions of users in the U.S.
FAQs
1. Why is TikTok banned in the U.S. App Store?
The ban stems from concerns over national security and data privacy related to TikTok’s Chinese parent company, ByteDance.
2. What role does Oracle play in TikTok’s future?
Oracle is negotiating to take over TikTok’s global operations, aiming to address U.S. concerns and secure the app’s presence in the country.
3. Will TikTok be fully owned by Oracle?
Under the proposed deal, Oracle would gain majority control while ByteDance retains a minority stake.
4. Can existing U.S. TikTok users still use the app?
Yes, existing users can still use the app, but updates and new downloads are unavailable due to its removal from app stores.
5. What’s TikTok’s valuation in the negotiations?
ByteDance is reportedly seeking a valuation in the hundreds of billions of dollars, complicating the financial feasibility of the deal.
