
The U.S. government is negotiating a deal that would see Oracle and a consortium of American investors take control of TikTok’s operations, while its Chinese parent company ByteDance retains a minority stake, sources familiar with the matter told Reuters.
Under the proposed agreement, Oracle would oversee TikTok’s data collection and software updates, addressing national security concerns raised by U.S. officials. Oracle, which already manages TikTok’s U.S. cloud infrastructure, is reportedly central to the plan. ByteDance’s current American investors, including General Atlantic, Sequoia Capital, Susquehanna International Group, and KKR, are expected to participate.
Discussions remain fluid, with potential changes to the scope of the deal. Talks may extend beyond TikTok’s U.S. operations to include other regions, one source noted.
The negotiations come amid a backdrop of heightened scrutiny over TikTok’s ties to the Chinese government. The app, which boasts 170 million users in the U.S., has faced calls for divestment or an outright ban over fears that user data could be accessed by Beijing.
TikTok was temporarily taken offline in the U.S. earlier this month due to legislation requiring its sale on national security grounds. President Donald Trump, who assumed office on January 20, issued an executive order delaying the enforcement of the law for 75 days to allow further negotiations.
The White House, Oracle, and ByteDance have declined to comment on the ongoing discussions. However, NPR reported that meetings between Oracle representatives and White House officials have taken place, with another meeting scheduled for next week.
The plan anticipates keeping TikTok’s current management team in place to continue running the app. Oracle’s role would center on addressing national security issues, expanding on an earlier agreement from 2022 that tasked Oracle with storing TikTok’s U.S. user data to alleviate concerns.
Competing bids for TikTok, including those led by billionaire Frank McCourt and YouTube personality Jimmy Donaldson (MrBeast), are reportedly not part of the current negotiations.
TikTok has consistently defended its independence, stating that U.S. user data is stored domestically on Oracle-operated servers, with content moderation decisions made within the U.S. Free speech advocates have opposed legislative efforts to ban the platform, arguing they undermine democratic principles.
The finalization of the deal could face challenges in Congress, with lawmakers seeking assurances on data security and U.S. ownership. President Trump has expressed a desire for the U.S. to hold a 50% ownership stake in any joint venture involving TikTok.