{"id":152117,"date":"2025-03-23T18:16:25","date_gmt":"2025-03-23T18:16:25","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/marketing\/oracle-in-talks-to-run-tiktok-as-white-house-weighs-ownership-deal\/"},"modified":"2025-03-23T18:16:25","modified_gmt":"2025-03-23T18:16:25","slug":"oracle-in-talks-to-run-tiktok-as-white-house-weighs-ownership-deal","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=152117","title":{"rendered":"Oracle in talks to run TikTok as White House weighs ownership deal"},"content":{"rendered":"


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Oracle is in advanced discussions with the White House about a deal to take over TikTok\u2019s US operations. However, concerns remain about the role of the app\u2019s Chinese founders, according to three sources familiar with the matter.<\/p>\n

Vice President JD Vance and national security adviser Mike Waltz are leading the negotiations on behalf of the Trump administration. Several senators have also pushed to be briefed on the talks, according to two sources. A third source described the discussions as progressing toward a potential agreement.<\/p>\n

The negotiations come amid ongoing warnings from lawmakers and national security experts that keeping TikTok\u2019s underlying technology under Chinese control could leave alleged security issues unresolved. Congressional Republicans have raised concerns that even with new ownership, TikTok\u2019s Beijing-based parent company, ByteDance, would retain influence over the app\u2019s algorithm and user data.<\/p>\n

Oracle\u2019s role and security concerns<\/h3>\n

If the deal moves forward, Oracle would be responsible for managing the data of American users and ensuring that the Chinese government cannot access it. However, one of the sources cautioned that such a guarantee could be difficult to enforce.<\/p>\n

\u201cYou still have this [algorithm] controlled by the Chinese,\u201d the person familiar with the matter told POLITICO<\/a><\/em>. \u201cThat means all you are doing is saying \u2018trust Oracle\u2019 to disseminate the data and guarantee there is no \u2018back door\u2019 to the data.\u201d<\/p>\n

TikTok\u2019s data practice has been under US scrutiny for years. Yet most recently, HaystackID, an independent security inspector for TikTok US, reported in February that it found no evidence of internal or external malicious activity or any unauthorised sharing of US user data with China.<\/p>\n

Project Texas 2.0<\/h3>\n

The potential agreement is being referred to as \u201cProject Texas 2.0,\u201d building on a previous deal between TikTok and Oracle. Under the original Project Texas, TikTok moved American user data to Oracle servers in Texas and restricted ByteDance employees in China from accessing it. The earlier deal also included Oracle reviewing TikTok\u2019s source code to assess security risks. However, those measures failed to ease concerns among lawmakers and the Biden administration about the app\u2019s ties to China.<\/p>\n

Key lawmakers, including several Republicans, have invited Oracle to discuss the proposed deal and national security implications this week, according to sources familiar with the matter.<\/p>\n

Political and business tensions<\/h3>\n

The renewed push to secure a TikTok deal follows an executive order signed by President Biden in January, giving ByteDance 75 days to sell its US operations or face a ban. The order came after Congress passed bipartisan legislation targeting TikTok over national security concerns.<\/p>\n

Trump, who previously sought to ban TikTok during his first term, has softened his stance on the app. Trump\u2019s shift followed a meeting with Republican donor Jeff Yass, who holds a large stake in ByteDance. In December, he told supporters at a rally that he had \u201ca warm spot\u201d for TikTok.<\/p>\n

Trump has said that his administration is in discussions with \u201cfour different groups\u201d about a potential TikTok deal. Oracle founder Larry Ellison, a longtime Trump supporter, has been floated as a possible buyer. Ellison has positioned himself as part of \u201cProject Stargate,\u201d a $500 billion AI infrastructure initiative that includes OpenAI, SoftBank, and MGX.<\/p>\n

China\u2019s position and regulatory challenges<\/h3>\n

Whether the deal moves forward may ultimately depend on the Chinese government. ByteDance would need approval from Chinese regulators to sell TikTok to a non-Chinese company.<\/p>\n

China\u2019s Commerce Ministry has signalled resistance to a forced sale, warning that any such transaction would require government approval. In March, Chinese Foreign Ministry spokesperson Shu Jueting said Beijing would \u201cfirmly oppose\u201d any forced divestment of TikTok\u2019s US business. Another spokesperson accused Congress of using \u201chegemonic moves\u201d to seize control of the app.<\/p>\n

China\u2019s overall position remains unclear. While officials in Beijing have softened their language in recent months, they have not indicated whether they would approve a sale. A spokesperson for the Chinese Foreign Ministry said in January that any deal \u201cshould be independently decided by companies in accordance with market principles.\u201d<\/p>\n

White House deadline approaching<\/h3>\n

The Trump administration faces an April 5 deadline to secure a deal or impose a ban. Trump recently expressed optimism that an agreement could be reached before the deadline.<\/p>\n

TikTok\u2019s parent company briefly shut down the app in January after failing to meet an earlier deadline for a sale. The Supreme Court upheld the congressional ban shortly afterwards, putting additional pressure on ByteDance to comply with US demands.<\/p>\n

Whether Oracle\u2019s involvement satisfies lawmakers\u2019 security concerns remains to be seen. If ByteDance retains any control over TikTok\u2019s algorithm or data, lawmakers could continue to push for more aggressive action.<\/p>\n

(Image by Pixabay<\/a>)<\/em><\/p>\n

See also: TikTok is back online. Other ByteDance apps? Not so much<\/a><\/strong><\/p>\n

Interested in hearing leading global brands discuss subjects like this in person? Find out more about Digital Marketing World Forum (#DMWF)<\/a> Europe, London, North America, and Singapore.<\/strong><\/p>\n

Tags:<\/span> data<\/a>, Social Media<\/a>, tiktok<\/a><\/p>\n<\/p><\/div>\n\n","protected":false},"excerpt":{"rendered":"

Oracle is in advanced discussions with the White House about a deal to take over TikTok\u2019s US operations. However, concerns remain about the role of the app\u2019s Chinese founders, according to three sources familiar with the matter. 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