Oracle and Microsoft are negotiating a TikTok takeover, ByteDance could retain a minority stake

Oracle and Microsoft discuss acquiring TikTok, facing complex negotiations.

: Oracle and Microsoft are in talks to acquire TikTok, with ByteDance potentially retaining a minority stake. The $200 billion valuation complicates negotiations, with Oracle seeking a stake worth tens of billions. China's regulatory stance might allow an ownership shift without fully excluding ByteDance. President Trump's remarks on U.S. entitlement to ownership add confusion to the talks.

Oracle and Microsoft are negotiating to take over TikTok, with ByteDance possibly retaining a minority stake despite the app's substantial $200 billion valuation. Oracle intends to manage TikTok's algorithm and infrastructure, while Microsoft is also involved in these talks. Chinese regulators may not impede ownership changes, creating an opening for a deal favoring American investors.

Negotiations confront hurdles such as national security concerns and congressional approval. There is a strong emphasis on ensuring ByteDance does not have operational control to prevent potential Chinese access, with options like binding legal commitments under discussion. However, verifying the absence of covert control is challenging, according to Sarah Kreps from the Brookings Institution.

President Trump's assertion of the U.S. deserving 50% of TikTok's ownership has introduced complications, leaving negotiators puzzled. Past efforts like Project Texas failed to ensure TikTok's independence from ByteDance, prompting the Biden administration to back possible mandates for ByteDance to sell TikTok. Meanwhile, the app remains unavailable on Apple and Google stores, impacting updates and downloads.