Oracle Emerges as Top Contender for U.S. TikTok Deal

Oracle has emerged as the leading contender to manage TikTok’s U.S. operations, following reports that the company is in advanced discussions to secure a deal. According to The Information, Oracle’s prior involvement with TikTok’s U.S. data operations makes it a strong candidate for a partnership that could satisfy regulatory concerns while allowing the app to continue operating in the country.

The potential deal is part of efforts to comply with last year’s divest-or-ban legislation, which requires TikTok’s Chinese parent company, ByteDance, to sell its U.S. operations or face a ban. ByteDance reportedly views Oracle as a viable partner, given the companies’ existing collaboration on Project Texas, an initiative designed to separate U.S. user data from ByteDance’s control.

Oracle’s connection to former President Donald Trump also factors into the equation. In 2020, Trump attempted to broker a sale of TikTok’s U.S. operations to Oracle, though the initiative was abandoned under the Biden administration. Now, with the legislative mandate already in place, Trump must oversee a deal to ensure TikTok remains accessible to American users.

Despite Oracle’s positioning, challenges remain. The Chinese government has consistently opposed a full sale of TikTok’s U.S. operations, particularly concerning its proprietary algorithms and technology. It remains unclear whether a partnership with Oracle would satisfy both U.S. regulatory requirements and China’s restrictions on technology transfers. While Trump recently stated that multiple bids are on the table, Oracle appears to be the frontrunner. A decision is expected early next month, which will determine the future of TikTok in the U.S. and whether a compromise can be reached that satisfies all parties involved.