Oracle and Microsoft reportedly in talks to acquire TikTok

A group of investors including Oracle and Microsoft are in talks to acquire TikTok's business, American public broadcaster NPR reported.

Exclusive: White House talking with Oracle, others to save TikTok : NPR
https://www.npr.org/2025/01/25/g-s1-44779/tiktok-ban-deal-trump-oracle

Oracle and Microsoft are reportedly in talks to take over TikTok - The Verge
https://www.theverge.com/2025/1/25/24351973/oracle-microsoft-tiktok-takeover-deal

In the United States, former President Joe Biden signed the ' Protecting Americans from National Security Threats Posed by Applications Controlled by Foreign Adversaries Act ,' commonly known as the TikTok Ban Act, into law in April 2024. This requires ByteDance, the developer of TikTok, to 'sell its business by January 19, 2025,' and if the sale is not completed by the deadline, TikTok's service in the United States will be suspended. In fact, the sale did not materialize, so TikTok's service was temporarily suspended.

TikTok, CapCut, Lemon8, MARVEL SNAP, etc. will be suspended in the United States as the 'TikTok Ban Law' comes into effect - GIGAZINE

However, President Donald Trump had declared his intention to protect TikTok even before he took office , and immediately signed an executive order to suspend the TikTok ban for 75 days, giving TikTok time to continue using its services in the United States.

President Trump signs executive order to suspend TikTok ban for 75 days - GIGAZINE

The White House is reportedly continuing negotiations to sell TikTok, and NPR has recently reported that it has received information from two people familiar with the matter, saying that 'Oracle and Microsoft are in advanced talks to acquire TikTok.' According to the report, TikTok's developer, China's ByteDance, is in talks to acquire the business in a form that would see Oracle oversee the app's algorithms, data collection, and software updates, while taking a minority stake in the app.

Oracle's server network already powers much of TikTok's backbone, but the deal will give Oracle 'effective oversight and oversight of what's going on at TikTok,' the anonymous source said. The aim of the deal is to 'minimize Chinese ownership,' the source said, and NPR reported, 'This means that American investors will effectively own a majority stake in TikTok. The terms of the deal are subject to change and details are still being worked out.'

Oracle is leading the acquisition of TikTok, but it appears that several American companies will also be involved. One of the companies mentioned is Microsoft, but NPR has not said anything other than that they are in talks. Microsoft has previously expressed interest in acquiring TikTok , but it is known that the company's co-founder, Bill Gates, was reluctant, calling the acquisition a 'poison chalice .'

When talk of acquiring TikTok arose in 2020, not only Oracle and Microsoft but also Walmart were listed as potential buyers. However, this time it is reported that they are not involved in the acquisition because they 'disapproved of the acquisition price.'

Microsoft teams up with Walmart in TikTok acquisition race - GIGAZINE

by Mike Mozart

President Trump has also hinted at the possibility of TikTok continuing as a joint venture in which the United States would own 50% of the shares.