Oracle Positioned to Play Key Role in Trump’s Plan to Secure TikTok’s U.S. Operations
In a strategic move to address national security concerns surrounding TikTok, the Trump administration is advancing negotiations with Oracle Corporation to oversee the app’s U.S. operations. This initiative aims to prevent a potential ban on the popular video-sharing platform, which has faced scrutiny over data privacy issues due to its Chinese ownership.
Oracle’s Proposed Involvement
The proposed arrangement would involve Oracle acting as a “trusted technology partner,” responsible for managing and safeguarding the data of American TikTok users. This partnership seeks to ensure that user information remains secure and inaccessible to foreign entities, thereby mitigating the national security risks identified by U.S. officials.
Stakeholder Interests and Legislative Hurdles
Existing U.S.-based investors in ByteDance, TikTok’s parent company, are reportedly interested in participating in the Oracle-led deal. Investment firms such as General Atlantic, Susquehanna, KKR, and Coatue are considering acquiring additional stakes, potentially buying out Chinese investors to increase American ownership. However, any agreement must comply with the bipartisan law enacted in 2024, which mandates full divestment by ByteDance to prevent exploitation by the Chinese Communist Party. This stipulation presents a significant challenge, as ByteDance intends to retain some ownership in TikTok’s U.S. operations.
Political Dynamics and Potential Opposition
While the White House is actively considering Oracle’s proposal, some lawmakers have expressed reservations. Senator Tom Cotton, a prominent Republican, has signaled potential opposition to any deal that allows ByteDance to maintain control or insight into TikTok’s technology, citing national security concerns. This stance underscores the complexities involved in finalizing an agreement that satisfies both the administration’s objectives and legislative requirements.
Implications for TikTok’s Future in the U.S.
The outcome of these negotiations carries significant implications for TikTok’s continued operation in the United States. With a looming deadline of April 5, the administration is under pressure to reach a resolution that addresses security concerns while preserving the app’s availability to American users. The proposed partnership with Oracle represents a pivotal step in this process, potentially setting a precedent for how foreign-owned tech companies can operate within U.S. regulatory frameworks.
Source : Swifteradio.com
