ByteDance, parent company of TikTok, is seeking urgent solutions to save the popular platform, which faces a potential U.S. ban if a deal isn't reached by April 5.
Oracle's Role in TikTok Negotiations
Negotiations are underway for a potential deal with Oracle, which could be key to addressing U.S. national security issues. Oracle previously attempted to acquire TikTok in 2020 but was unsuccessful. Nevertheless, it remains a crucial cloud provider for TikTok, aiding in the storage of U.S. user data under 'Project Texas'.
U.S. Administration's Stance
The White House is considering a deal where Oracle gains a stake in TikTok to protect American data while TikTok, led by CEO Shou Zi Chew, resists sharing its app algorithm.
Future of TikTok and ByteDance
If the Oracle deal falls through, U.S. investors might increase their stakes to acquire TikTok's U.S. operations, reducing Chinese ownership below a critical 20% threshold.
While there's confidence in reaching a deal outline by April 5, finalization remains uncertain as ByteDance and the Chinese government oppose selling TikTok.
