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| Many US tech companies are interested in buying TikTok's business in the United States | Photo: Reuters |
Oracle and Microsoft have entered into discussions to acquire TikTok’s operations in the United States. The move comes as the popular Chinese-owned video-sharing platform faces a mandate to sell its U.S. business within the next two and a half months.
The requirement has triggered interest from several major American tech companies, including Oracle and Microsoft, who are now competing for ownership.
Reports from U.S. media reveal that a consortium of investors, led by Oracle and Microsoft, is negotiating a deal to purchase TikTok’s U.S. operations. The arrangement would allow ByteDance, TikTok’s Chinese parent company, to retain a minor stake, while Oracle and Microsoft would gain control over the platform’s algorithms, data management, and software updates.
Currently, Oracle operates TikTok’s U.S. server network, and under the proposed agreement, the company is expected to oversee and monitor the app’s operations. The potential deal aims to significantly minimize Chinese ownership, addressing concerns raised by U.S. government agencies.
The U.S. Department of Justice and other federal agencies have expressed concerns about TikTok’s data security, particularly the risk of misuse of personal information belonging to 170 million American users.
Despite these allegations, TikTok has consistently denied any wrongdoing, maintaining that all U.S. user data is securely stored on Oracle’s cloud servers within the United States.
The negotiations mark a pivotal moment for TikTok, as the platform seeks to resolve its ongoing disputes with U.S. regulators while maintaining its presence in one of its largest markets.
Whether Oracle and Microsoft succeed in finalizing a deal will likely determine TikTok’s future in the United States.