According to a report by NPR, Oracle and other U.S.-based investors are exploring an acquisition plan to acquire TikTok. This development follows an executive order signed by former U.S. President Donald Trump, which sought to address national security concerns over TikTok’s Chinese ownership.
U.S. Ownership to Address Security Concerns
The proposed plan would see TikTok’s Chinese parent company, ByteDance, relinquishing majority control of the platform. Oracle is expected to acquire a significant stake in TikTok’s U.S. operations, taking over its app collection, algorithm, and software updates. ByteDance, however, might retain a minority stake, though this aspect remains a contentious issue.
A federal law passed by Congress mandates that TikTok undergo a “qualified divestiture” from ByteDance. Lawmakers insist on severing all operational ties with the Chinese firm to prevent potential security risks.
Negotiations Still in Flux
Despite talks being in progress, no final deal has been reached. Oracle executives and representatives from the White House reportedly held a meeting last Friday, with another session scheduled in the coming week. Oracle is reportedly interested in a stake worth tens of billions of dollars, but significant hurdles remain.
Valuing TikTok, a platform used by millions of Americans for entertainment, education, and income generation, presents a major challenge. Additionally, Congress has voiced concerns about any lingering connection with ByteDance, further complicating the negotiations.
Microsoft and Walmart may also be involved in discussions, but both companies have declined to comment on their participation.
Uncertain Future for U.S. TikTok Users
If a deal cannot be finalized, TikTok’s operations in the U.S. could face an uncertain future. The platform, which has become a significant part of daily life for many Americans, may risk a full ban. For now, TikTok users will need to stay tuned as negotiations unfold.
This acquisition, if successful, could reshape TikTok’s operations in the U.S. while addressing the national security concerns raised by lawmakers. Until then, the app’s future hangs in the balance.
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