It has been claimed that US-based technology giants Oracle and Microsoft have started negotiations to take over the global operations of the popular video sharing platform TikTok. In this context, it is stated that TikTok’s China-based parent company ByteDance will remain with a minority stake on the platform, but algorithm management, data collection processes and software updates will be supervised by Oracle. Although it is stated that the White House is also involved in the talks, President Donald Trump’s statements on the subject add a different dimension to this process. Although Trump confirmed the talks, he stated that he was not in direct cooperation with Oracle. These statements caused continued uncertainty about the future of TikTok.
Who will be entrusted with the control of TikTok?
Trump told Reuters during a trip to Florida, USA, that he met with many important people regarding TikTok and emphasized that there is great interest in this issue. However, he stated that Oracle was not among these names. “A lot of people are talking to me about this,” the president said. “There are some pretty influential people and I will probably make a decision within the next 30 days.” he said. However, it is known that the US Congress gave ByteDance a 90-day period to transfer TikTok operations. Trump stated that saving TikTok would be a “good step” and pointed out that the platform should continue with a US-based structure.
On the other hand, other names that show interest in purchasing TikTok also attract attention. Elon Musk, real estate investor Frank McCourt and Kevin O’Leary, the host of the “Shark Tank” program, are among the prominent names in this process. Trump publicly expressed his support for Oracle co-founder Larry Ellison’s acquisition of the platform.
The fact that Oracle already has a server network that provides much of TikTok’s infrastructure gives this company a strategic advantage. Experts state that with a possible agreement, Oracle’s control and surveillance capacity on the platform can be increased. On the other hand, Microsoft’s role in this process is not yet fully clear. The company made an attempt to acquire TikTok’s US operations in 2020, together with Oracle and Walmart. However, the negotiations at that time were inconclusive, and this process made Microsoft’s potential influence on the platform controversial.
Negotiations regarding ByteDance and TikTok gained momentum after President Trump previously issued an executive order to sever the platform’s connection to China. This order gave ByteDance a 75-day period to divest its shares in TikTok. Trump also brought up a joint venture model in which the USA could own 50% of TikTok at the end of this process. However, the feasibility of this proposal and how China would approach such an agreement remains unclear.
It is a matter of curiosity to what extent Microsoft will play a role in these new negotiations. The company had attempted to acquire TikTok in previous years, but this process was considered a “complex and difficult responsibility”. These statements reveal that Microsoft is afraid of possible risks as much as it desires control over the platform. On the other hand, it is reported that some companies that were involved in the previous processes, such as Walmart, withdrew from the agreement this time due to high costs.
In this process under Trump’s administration, considering the future of TikTok and the economic and political tensions between the USA and China, the outcome of the negotiations is considered not only as a business agreement but as a broader strategic move. The transition of TikTok’s US operations to the control of a local company raises important questions about how it will affect the platform’s international position and user security.
As a result, talks on the transfer of TikTok’s global operations are shaping up not only as a technology deal but also as an economic and political strategy. The involvement of technology giants such as Oracle and Microsoft in the process reveals the importance of this agreement and the far-reaching effects of its consequences.