It looks like Oracle is poised to be an important part in TikTok’s operations in the United States. Sources with knowledge of the negotiations tell CBS News, Oracle is among a consortium of firms that would enable TikTok to continue operations in the U.S. if a framework deal between the United States and China is finalized.
The precise structure of the final deal was unclear Monday night, but will include multiple companies, the sources said. It’s not clear what level of involvement Chinese firms — including TikTok’s current parent company ByteDance — will have in the deal, and who will control TikTok’s powerful recommendation algorithm. Presidents Trump and Xi are expected to talk on Friday.
“The commercial terms have been agreed upon,” Treasury Secretary Scott Bessent said Monday in Madrid after meetings with Chinese officials on a range of issues, including TikTok.
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Li Chenggang, a Chinese vice minister of commerce, also said after the meetings, “China will firmly safeguard the national interests, the legitimate rights and interests of Chinese enterprises, and carry out technology export approval in accordance with relevant laws and regulations.”
This year, TikTok faced a significant legal challenge in the U.S. after the Supreme Court upheld a law requiring its Chinese parent company, ByteDance, to divest TikTok’s American operations or face a nationwide ban. This ruling stemmed from ongoing national security concerns about data privacy and Chinese government access to user information. President Donald Trump issued an executive order delaying the ban by 75 days, allowing time for negotiations.
While this potential sale could preserve TikTok’s presence for its 170 million American users, uncertainties remain. Critics worry about ByteDance’s continued influence over TikTok’s U.S. operations and whether the proposed safeguards sufficiently address security risks. If the sale is finalized, TikTok could maintain a foothold in the U.S. market under new ownership, possibly setting a precedent for how other foreign tech companies operate amid geopolitical tensions. However, if no agreement is reached, TikTok risks a permanent ban, reshaping the social media landscape and impacting millions of users and content creators across the country.
READ: TikTok builds new version of app ahead of expected sale (
TikTok’s future in the U.S. hinges on a delicate balance between regulatory scrutiny, geopolitical tensions, and corporate negotiations. The involvement of Oracle and other U.S.-based firms in the proposed framework deal suggests a path forward that could allow TikTok to continue serving its large American user base while addressing national security concerns. This potential divestiture and restructuring might set a precedent for how foreign technology companies navigate complex regulatory landscapes in major markets like the U.S. However, uncertainties remain regarding the extent of ByteDance’s influence post-sale and whether the safeguards will fully satisfy U.S. regulators and lawmakers.
If the deal is successfully finalized, TikTok could maintain its strong presence in the American social media ecosystem, continuing to innovate and grow under new ownership. Conversely, failure to reach an agreement may result in a permanent ban, significantly impacting millions of users, content creators, and the broader digital landscape. Ultimately, TikTok’s trajectory will reflect ongoing tensions between technology, security, and international diplomacy in an increasingly interconnected world.