Trump’s TikTok Deal: What We Know So Far As Reports Suggest Oracle Could Take Lead Role

With President Donald Trump’s executive order pausing the U.S. TikTok ban set to expire in just a few weeks, uncertainty looms over how the administration, private companies, and the Chinese government will navigate a deal to keep the app running. Recent reports indicate that Oracle may take a leading role in the negotiations, setting the stage for a high-stakes battle over national security, corporate interests, and digital sovereignty.

 

Key Developments

Trump’s TikTok Ban Pause Nears Expiration

• Trump’s executive order temporarily halting the federal TikTok ban is set to expire on April 5.
• The ban, first enacted in April 2024, required TikTok’s Chinese parent company, ByteDance, to divest its U.S. operations.
• No final agreement has been reached on how TikTok will function in the U.S. moving forward.

Oracle Emerges As Leading Contender

• Reports from Politico and The Information suggest that Oracle is the frontrunner to take over TikTok’s U.S. operations.
• The proposed deal would reportedly grant Oracle oversight over TikTok’s U.S. data, ensuring it remains walled off from Chinese government access.
• However, ByteDance would retain control over TikTok’s algorithm, raising concerns about data security and Chinese influence.

Who Else Could Take Over TikTok?

• Other interested parties include:
  
  • Artificial intelligence firm Perplexity AI
  • Former Treasury Secretary Steven Mnuchin
  • Investor groups led by billionaire Frank McCourt and Employer.com founder Jesse Tinsley
  • Microsoft, which Trump previously mentioned as a potential buyer
  • Reid Rasner, CEO of Omnivest Financial, who has pitched a bid that includes a tiered payment system for creators

Challenges & Roadblocks

1. Chinese Government Approval:

   • Any deal involving ByteDance divesting from TikTok must be approved by Beijing, which has historically opposed selling off the platform.
   • While China has softened its stance, officials still emphasize that decisions should be made “independently by companies in accordance with market principles.”

2. National Security Concerns:

   • Some U.S. lawmakers fear allowing ByteDance to keep its algorithm could still give China backdoor access to U.S. user data.
   • TikTok has denied any wrongdoing or ties to the Chinese Communist Party.

3. Legal & Regulatory Hurdles:

   • The Federal Communications Commission (FCC) and Congress must review and approve the final agreement.
   • Trump has floated the idea of the U.S. government owning 50% of TikTok, but it’s unclear whether this would be legally or financially viable.

What’s Next?

• Vice President JD Vance, who is leading the TikTok negotiations, said he expects a high-level agreement by April 5, but noted that finalizing the deal could take months.
• Oracle representatives are scheduled to meet with lawmakers on Capitol Hill this week as negotiations accelerate.
• If no deal is reached by April 5, Trump has the authority to extend the ban pause for an additional 15 days, though further extensions could face legal challenges.

Bottom Line

The fate of TikTok in the U.S. remains uncertain. While Oracle appears to be the leading candidate to take control of TikTok’s U.S. operations, key obstacles—including Chinese government approval, national security concerns, and potential legal battles—could delay or derail the final agreement.