Tech giant Oracle is reportedly on its way to close a deal that could help TikTok evade a ban in the U.S. According to a Bloomberg report, Oracle plans to vouch for TikTok security in exchange for a small stake in the social media platform’s U.S. operations.
The prospect of a TikTok ban in the U.S. became a reality in January, when the Supreme Court decided to uphold a law that required TikTok’s parent company ByteDance to divest from the social media platform by Jan. 19. Failing that, TikTok would face a ban in the U.S. The app had indeed gone dark on the day of the ban for American users but it became accessible once again within 24 hours — thanks to President Donald Trump. TikTok received some more breathing room after Trump signed an executive order to give the company an additional 75 days to find a buyer.
READ: US Supreme Court votes in favor of TikTok ban (January 17, 2025)
Oracle’s proposal was reportedly discussed in the Trump administration last week and includes guarantees of “no backdoor in a U.S. version of TikTok for China’s government to exploit.” Vice President J.D. Vance said, “There will almost certainly be a high-level agreement that I think satisfies our national security concerns” by the April 5 deadline to save TikTok in an interview with NBC News.
Oracle’s bid for TikTok was approved by President Trump back in 2020. Despite this, several hurdles remain, including regulatory compliance in both the U.S. and China and negotiating access to TikTok’s valuable advertising and usage algorithms. There are also concerns among lawmakers and national security officials, some of whom argue that as long as China retains influence over TikTok’s core technology, the risks don’t really go away.
READ: TikTok might ‘go dark’ on Jan. 19, Supreme Court likely to uphold app ban (January 11, 2025)
Independent auditors say there’s no evidence of data-sharing with Beijing, however, that hasn’t stopped the rising concerns. Beijing too, is not thrilled by the idea of a forced sale, and has made it clear that any deal will need its blessing.