Oracle and Microsoft are reportedly engaged in discussions with the White House regarding a potential acquisition of the China-based TikTok application, according to a report by NPR.
This proposed arrangement would permit ByteDance, the current owner of TikTok, to retain a minority stake in the social media platform while Oracle would assume responsibility for overseeing the app’s algorithm, data management, and software updates.
On Monday, President Donald Trump instructed the Justice Department to temporarily suspend enforcement of the TikTok ban until early April;
however, several questions persist regarding the extent of Trump’s authority to issue such an order and whether ByteDance would be open to divesting the widely used social media platform.
Under a federal law recently affirmed by the Supreme Court, ByteDance was mandated to sell TikTok to an approved purchaser by Sunday or risk facing a nationwide ban.
NPR has made a commitment to keep the identities of its sources confidential, as these individuals are not authorized to speak publicly regarding the sensitive discussions currently taking place.
Among the potential investors involved in these talks is Microsoft, a notable player in the tech industry.
Reflecting on a prior event from 2020, it was during that year that former President Trump expressed support for a takeover attempt of TikTok that included Oracle and Walmart.
However, that potential acquisition ultimately fell through.
Recently, a source familiar with the ongoing negotiations revealed that Walmart is currently opting out of the discussions, having hesitated in the face of TikTok’s steep asking price.
On another front, representatives from Oracle met with officials from the White House last Friday to deliberate on a possible acquisition deal.
Another meeting has been scheduled for the following week to continue these critical discussions.
The source mentioned that Oracle is looking to acquire a stake in TikTok valued “in the tens of billions,” although many aspects of the deal remain uncertain and are still being negotiated.
When approached for comments, spokespeople for both Microsoft and Walmart chose not to provide any remarks.
Additionally, TikTok, Oracle, and White House officials did not respond to requests for comment.
