Discussions between Oracle and the White House regarding a potential takeover of TikTok are reportedly in an advanced stage. The negotiations are being led by Vice President JD Vance and national security adviser Mike Waltz on behalf of President Donald Trump. This development follows extended concerns over TikTok’s ownership and data security, particularly its ties to its Chinese parent company, ByteDance. The outcome of these discussions could significantly affect the app’s future operations in the U.S., as well as its millions of users and content creators.
Past attempts to address security concerns, such as the 2023 initiative “Project Texas,” allowed Oracle access to TikTok’s algorithm, source code, and content moderation practices. Despite these measures, concerns about potential Chinese government influence persisted, leading to legislative efforts requiring ByteDance to divest TikTok’s U.S. operations. With previous deadlines passing without a resolution, the Biden administration had initially pursued restrictions, but Trump’s return to office altered the timeline, extending the deadline for a new owner to be found.
What Role Would Oracle Play in TikTok’s Operations?
If the agreement proceeds, Oracle would be responsible for overseeing American user data and ensuring that the Chinese government has no access to it. However, some experts argue that this arrangement may not fully eliminate security risks, especially if TikTok’s algorithm remains under the control of ByteDance. A source familiar with the discussions expressed doubt over whether Oracle could guarantee complete data protection, stating,
“If the Oracle deal moves forward, you still have this [algorithm] controlled by the Chinese. That means all you are doing is saying ‘trust Oracle’ to disseminate the data and guarantee there is no ‘back door’ to the data.”
Can TikTok Maintain Its Popularity Under New Ownership?
TikTok remains one of the most influential social media platforms, particularly among younger demographics. Research indicates that nearly 80% of millennials and Gen Z rely on social media for financial advice, while Gen Z consumers are significantly more inclined to purchase influencer-promoted products. If Oracle assumes control, the platform’s operational changes could impact businesses and content creators who use TikTok for marketing and sales. Maintaining user engagement and advertiser confidence will be crucial for the platform’s continued success.
The uncertainty surrounding TikTok’s future has affected both users and potential buyers. While Trump recently mentioned interest from four potential buyers, no definitive deal has been reached. The ongoing negotiations highlight the broader tensions between the U.S. government and Chinese-owned technology firms, raising questions about regulatory policies and foreign investments in digital platforms.
If Oracle takes over TikTok’s U.S. operations, its ability to manage security concerns while preserving the platform’s core functionalities will be tested. The extent to which ByteDance retains influence over TikTok’s features, including its algorithm, remains a key issue. While Oracle has previously collaborated with TikTok on security measures, any agreement must address national security concerns effectively to satisfy regulators and policymakers. Meanwhile, content creators and businesses dependent on TikTok will be watching closely to see if changes impact their reach and revenue.
