Oracle and Microsoft in Talks to Acquire TikTok

Oracle and Microsoft in Talks to Take Over TikTok

Oracle and a group of investors that includes Microsoft are in talks to take over TikTok’s global operations, reports NPR. The deal, which the White House is reportedly negotiating, would see ByteDance keeping a minority stake in TikTok while “the app’s algorithm, data collection and software updates will be overseen by Oracle.”

Oracle’s Involvement and Role in the Deal

Oracle’s server network already provides the bulk of TikTok’s backbone, and under the deal, the company would “effectively monitor and provide oversight with what is going on with TikTok,” according to one of NPR’s anonymous sources, who added that the agreement’s goal is to “minimize Chinese ownership.”

Microsoft’s Reported Involvement and Past Engagements

Microsoft’s reported involvement isn’t clear beyond that it is “engaged in the talks.” The company was also in the mix with Oracle and Walmart in a 2020 bid to take over TikTok that Microsoft co-founder Bill Gates had called “a poison[ed] chalice.” Walmart reportedly isn’t involved this time around “after balking at the estimated price” of the app.

Recent Developments and Executive Orders

News of the talks comes after President Trump issued an executive order giving TikTok and others a 75-day reprieve from any enforcement action related to the United States’ requirement that ByteDance divest from TikTok. Trump had previously floated the possibility of a “joint venture” in which the US owns 50 percent of the company.

Comments from Key Stakeholders

We’ve reached out to Oracle, Microsoft, TikTok, and the White House for comment.

FAQs

Q: What is the current status of the talks between Oracle, Microsoft, and TikTok?

A: The talks are ongoing, with negotiations focusing on Oracle and Microsoft potentially taking over TikTok’s global operations.

Q: Why is ByteDance keeping a minority stake in TikTok?

A: ByteDance is retaining a minority stake in TikTok as part of the deal, while Oracle would oversee the app’s algorithm, data collection, and software updates.

Q: What role does the White House play in these negotiations?

A: The White House is reportedly involved in the negotiations, with the goal of minimizing Chinese ownership of TikTok.

Q: Why isn’t Walmart involved in the current talks?

A: Walmart is not part of the current discussions after balking at the estimated price of acquiring TikTok.

Q: What was President Trump’s previous stance on TikTok’s ownership?

A: President Trump had previously suggested a “joint venture” where the US would own 50 percent of TikTok.

Q: What is the timeline for a potential agreement?

A: The executive order issued by President Trump provides a 75-day reprieve for TikTok to address the divestment requirement.

Q: How will this potential takeover impact TikTok users?

A: The details of the deal are still being negotiated, but users can expect changes in how TikTok’s operations are overseen and managed.

Q: Will there be any changes to TikTok’s services or features?

A: The specifics of any changes to TikTok’s services or features have not been disclosed, as the negotiations are ongoing.

Q: What are the implications of Oracle and Microsoft potentially taking over TikTok?

A: If the deal goes through, Oracle and Microsoft would play a significant role in overseeing TikTok’s operations and ownership structure.

Q: How will this impact TikTok’s global user base?

A: The potential takeover could lead to changes in how TikTok operates globally, affecting its user base and overall user experience.

Q: What are the next steps in the negotiation process?

A: The next steps involve continuing discussions between Oracle, Microsoft, TikTok, and other stakeholders to finalize the terms of the potential takeover.

Credit: www.theverge.com