Media report: Talks about TikTok purchase, Oracle and Microsoft involved

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Less than a week after the TikTok ban was lifted in the US, a possible takeover by Oracle and other US investors, including Microsoft, is now under discussion. The Chinese group Bytedance, which currently still owns the social media platform, is to be allowed to continue to hold a small stake in TikTok. Otherwise, the ByteDance subsidiary TikTok, including the algorithm, the collected data and responsibility for software updates, is to be transferred to a consortium consisting of Oracle and other US companies.

The White House, which as of this week is once again under the leadership of the newly inaugurated 47th US President and Republican Donald Trump, is apparently leading the talks. The non-profit organization NPR was the first media outlet to report on the plans, citing people who are either involved in the talks or working for the US Congress on the negotiation process. As those involved are not allowed to speak publicly about the process, NPR does not wish to disclose their identities.

Oracle, Microsoft and Co. could get involved

As the talks currently stand, Oracle, Microsoft and Co. would acquire a majority stake in TikTok, although the terms of the sale could still change. According to NPR, an initial meeting between Oracle and representatives of the White House took place on Friday, with another to follow in the coming week. According to NPR sources, Oracle wants to acquire TikTok for an amount in the double-digit billion range. However, Bytedance is currently still calling for a TikTok purchase price of at least 200 billion dollars, which is probably far beyond the budget of potential investors.

Nothing is yet known about Microsoft's role, except that the company is involved in the talks. TikTok, Oracle, the White House or Microsoft are not yet willing to comment on the matter.

"Effectively monitor and control" Tiktok

Oracle is already one of TikTok's most important service providers. According to the portal TheVerge, Oracle provides the majority of the backbone of TikTok's server network. Following a possible takeover, the company should be able to "effectively monitor and control" "what goes on at TikTok", NPR quotes an anonymous source. According to the source, the aim of the agreement is to "minimize Chinese ownership".

The current talks are entirely in line with Trump's plans to achieve a sale of TikTok that will ensure the app's continued existence on the US market. His predecessor and Democrat Joe Biden had passed a law with his administration with great approval that provided for a ban on TikTok in the USA if Bytedance did not sell its US business to US investors by January 19 or at least enter into corresponding talks. However, this did not happen, which is why TikTok briefly went offline in the USA on January 19. After an absence of twelve hours, TikTok returned with the message that they would like to thank Donald Trump – for making the service available again.

Controversial Trump decree

Shortly after his inauguration, Trump issued a decree allowing the operation of TikTok – and the use of service providers such as Oracle – for a further 75 days. However, it is questionable to what extent this decree is compatible with the law passed by the previous government. Google and Apple, for example, have not yet reinstated the TikTok app in their app stores.

Alan Rozenshtein, former legal advisor to the US Department of Justice, explained this week that promises of non-enforcement often do not stand up in court. In addition, a de facto infringement is nevertheless committed, which is only time-barred after five years. Consequently, in the event of a change of government or even with the current government, companies could still face hardship in the form of massive fines. And even before the 75-day period expires, Trump could revoke his executive order at any time.

Failure to comply with it would result in massive fines, which companies could still be sentenced to a year after Trump's current term of office.

(nen)