Oracle is emerging as the frontrunner to take control of TikTok’s US operations. This is according to a new report from The Information (paywalled). The Oracle TikTok lead is significant, given the platform’s enormous influence and the political scrutiny surrounding its operations in the US.
Oracle reportedly in the lead
This isn’t the first time Oracle has been linked to potentially acquiring TikTok. Trump mentioned Oracle’s co-founder Larry Ellison during one of his speeches. Trump himself had previously stated that there were four bidders in the running but did not name them directly. However, the latest report suggests Oracle is one of them.
That being said, this deal is contingent on one thing: ByteDance does not intend to give up full control of TikTok. Even if Oracle were to take charge of TikTok’s US operations, ByteDance says it wants to maintain a hands-on role in the business. This is even if portions of the company end up under American ownership. It sounds like quite a huge ask, but ByteDance believes it has the leverage to do so.
Both Oracle and TikTok have an existing partnership through Project Texas. This multibillion-dollar initiative sees TikTok store US user data on Oracle’s cloud servers. This partnership also allows Oracle to audit TikTok’s algorithm source code, providing oversight to address national security concerns. If Oracle does take over TikTok’s US operations, Project Texas could become the foundation for the transition. This ensures data security while keeping TikTok’s algorithm intact.
Meanwhile, other groups remain in the race. A consortium led by billionaire Frank McCourt, which includes Reddit co-founder Alexis Ohanian, has expressed interest in acquiring TikTok. YouTube star MrBeast is also linked to a separate bid. However, with the Oracle TikTok lead gaining momentum, these alternatives may struggle to gain traction, especially given Ellison’s relationship with Trump.
A bumpy ride towards the finish
TikTok is currently enjoying a temporary 75-day reprieve from a US ban. This ban expires in April, but Trump has indicated he might extend this deadline. However, many questions remain. If an entity were to be formed to oversee TikTok’s operations in the US, what exactly would it oversee? Would it oversee advertising? Sales? Engineering? Or would it end up controlling user data or TikTok’s highly coveted algorithm?
With Oracle in the lead position to buy TikTok, this saga could soon end, but it doesn’t look like it’s going to be a smooth road to the finish line.
