Recent reports have revealed that Software giant Oracle has emerged as the “leading contender in the acquisition of TikTok in the U.S.
Citing sources, the deal, structured on an existing partnership between Oracle and TikTok’s Chinese-owned parent company, ByteDance, would allow TikTok to store U.S user data on Oracle-controlled servers and Oracle the ability to audit TikTok’s source code.
However, both companies have yet to confirm or comment on the deal. The Information reported that ByteDance wants Trump to sign off on a deal with a revived version of TikTok’s “Project Texas”, a previous effort by the company to convince the U.S. Congress that it was not a national security threat by parking US user data on servers controlled by Oracle.
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This initiative, which failed to assuage Congress’s concerns, also called for Oracle to review TikTok’s source code to ensure it is safe.
Oracle emerging as the leading contender for TikTok comes after US President Donald Trump this week disclosed that four groups were in talks to buy the platform. When asked by reporters if there was going to soon be a deal on TikTok, Trump replied, “It could”.
“We are dealing with four different groups, and a lot of people want it, all four are good”, he added.
After suspending the bipartisan ban on TikTok for 75 days shortly after assuming office, Trump has been pursuing a sale of the app’s US operations for it to continue working in the country.
Since granting the 75-day reprieve, the Trump administration has been facilitating the sale of TikTok’s US operations, and various parties, ranging from Oracle to billionaire Elon Musk, have been reported at various points as potential buyers. Oracle has discussed a deal to buy TikTok along with other investors, such as Microsoft, Perplexity Al has proposed to merge with TikTok, and YouTuber Mr Beast has offered to buy the app’s US operations.
Also, a group led by billionaire Frank McCourt, “Shark Tank” star Kevin O’Leary, and Reddit cofounder Alexis Ohanian has publicly campaigned to buy TikTok and rebuild its recommendation algorithm from scratch on US soil. The group claims it will utilize blockchain technology to ensure users have greater control over how their data is monetized.
Trump has until April 5 to find a buyer for TikTok, after the January executive order. However, earlier this month, he announced that he would probably extend the deadline again if it became necessary to complete a deal. He has also suggested the US government could buy a stake in the app through a sovereign wealth fund as part of a joint venture though the details remain unclear.
Why The Sale of TikTok in The US
The push for the sale of TikTok in the United States stems primarily from national security and data privacy concerns related to its ownership by ByteDance, a Chinese company. U.S. lawmakers and officials have argued that TikTok’s ties to China pose significant risks, leading to legislative action aimed at forcing its sale or banning it outright.
They worry that China could manipulate TikTok’s algorithm to shape content in ways that serve its geopolitical interests, such as spreading misinformation or amplifying divisive narratives. This concern gained traction during events like the Israel-Hamas war and the 2024 U.S. presidential election, where TikTok’s role in shaping public opinion was scrutinized.
However, despite the issues, TikTok is still going strong after its ban in January was lifted by Trump. The app was among the most downloaded apps in the U.S. in 2024, and approximately half of the country’s population is among TikTok’s active users. The app is noted for its intense ability to influence trends, which Trump said was pivotal to his victory in the U.S. election.
Looking Ahead
The sale of TikTok remains a focal point as of March 14, 2025, with the Trump administration reportedly engaging with potential buyers after extending the ban deadline in January. The goal is to transfer TikTok’s U.S. operations to American hands, ideally neutralizing the perceived threats while preserving its presence in the market.
