Oracle is emerging as the frontrunner in the US TikTok deal, with the tech giant positioning itself to meet regulatory demands and secure the app’s future in the US.
Oracle is positioned to become TikTok’s critical partner in the US, as negotiations intensify over the future of the popular app. The company has emerged as the most likely candidate to help satisfy regulatory concerns and preserve TikTok’s operations in the United States.
According to recent reports from The Information, Oracle is nearing a deal that would address the stipulations of the divest-or-ban law put forward last year under the Trump administration. This law required TikTok to either sell its US operations or face a potential ban, citing national security concerns about the app’s Chinese ownership. Oracle’s role, in this context, would likely involve managing the platform’s American operations, ensuring that the app adheres to stringent data privacy regulations.
Oracle’s involvement has been expected for some time, as it was previously suggested as a key partner for TikTok’s US operations. The company’s deep expertise in cloud computing and its longstanding ties to the US government make it a logical choice to address concerns about TikTok’s Chinese parent company, ByteDance. With the tech giant’s reputation for working closely with government agencies, Oracle’s bid to manage TikTok’s data and infrastructure aligns with broader geopolitical priorities.
As discussions advance, the terms of the deal are likely to focus on the division of control and the safeguarding of user data. If finalized, this partnership could provide TikTok with a crucial lifeline, allowing it to maintain its presence in the US market.
This deal could set a precedent for how tech companies navigate complex international regulations, balancing business interests with national security considerations.