Oracle, Microsoft in talks to acquire TikTok's global operations: Report
What's the story
Oracle and a consortium of investors, including Microsoft, are said to be in talks to take over TikTok's global operations.
According to NPR, the White House is brokering these talks.
The deal, if finalized, would allow ByteDance to keep a minority stake in TikTok while handing over control of the app's algorithm, data collection, and software updates to Oracle.
Tech partnership
Oracle's role in TikTok's operations
Oracle already plays a major role in TikTok's operations by powering most of its server network.
An insider source told NPR that under the proposed deal, Oracle would "effectively monitor and provide oversight with what is going on with TikTok."
The main goal of this deal is to cut Chinese ownership, thus addressing the security concerns raised by US lawmakers.
Corporate interest
Microsoft's involvement and previous acquisition attempts
Microsoft's involvement in the ongoing talks remains uncertain, with NPR only confirming its participation.
This isn't the first time Microsoft has expressed interest in TikTok. Back in 2020, it was part of a consortium with Oracle and Walmart that tried to acquire the app.
However, Walmart is not part of the current negotiations over concerns about TikTok's estimated valuation.
Policy impact
Trump administration's intervention and legislative pressure
The takeover talks started after President Donald Trump issued an executive order, giving TikTok a 75-day reprieve from any enforcement action under the US requirement for ByteDance to divest from TikTok.
The move came after lawmakers passed a bill in 2024, requiring parent firm ByteDance to either sell TikTok or face a ban in the US.
The app briefly went dark before this law came into effect—until Trump said he would issue an executive order delaying the ban.