Oracle and Microsoft Reportedly in Discussions to Acquire TikTok’s US Operations

Oracle, along with a group of investors including Microsoft, is reportedly in discussions to acquire TikTok's global operations, according to NPR. The proposed deal suggests ByteDance would retain a minority interest while Oracle would manage the app's algorithm, data collection, and software updates. The White House is said to be involved in these negotiations, although President Trump has denied collaborating with Oracle.

During a flight to Florida, Trump mentioned that he had spoken to numerous parties interested in TikTok. He clarified that Oracle was not among them. "No, not with Oracle. Numerous people are talking to me, very substantial people, about buying it and I will make that decision probably over the next 30 days," he stated. Congress has provided a 90-day timeframe for this decision.

Potential Buyers and Interests

Other potential buyers reportedly include Elon Musk, real estate mogul Frank McCourt, and Shark Tank host Kevin O'Leary. Trump expressed his preference for Larry Ellison, Oracle's co-founder, to purchase the platform. Oracle's server network already supports much of TikTok's infrastructure. A deal could allow Oracle to oversee TikTok's operations effectively.

NPR sources indicate that the agreement aims to reduce Chinese ownership of TikTok. Microsoft's role in these talks remains unclear beyond its involvement in discussions. Previously, Microsoft partnered with Oracle and Walmart in a 2020 bid for TikTok. Bill Gates described this bid as "a poison[ed] chalice." However, Walmart is reportedly not participating this time due to the app's estimated cost.

Executive Orders and Deadlines

The discussions follow an executive order by President Trump granting TikTok a 75-day extension from enforcement actions related to ByteDance divesting from TikTok in the US. Trump had earlier suggested a joint venture where the US would own half of the company. Microsoft declined to comment on these developments.

An update on January 26th noted Microsoft's refusal to comment and included Reuters' report of Trump's denial regarding collaboration with Oracle on any deal. The ongoing discussions about TikTok's ownership involve various interested parties and could influence its global operations while addressing data privacy and national security concerns.

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