Oracle and Microsoft advance in negotiations to acquire TikTok

Last update: 07/02/2025
Author Isaac
  • Oracle and Microsoft are in talks to acquire TikTok's global operations.
  • The agreement seeks to minimize the chinese influence on the social network and ensure US oversight.
  • ByteDance could maintain a minority share on TikTok under the new ownership scheme.
  • Negotiations are being driven by the Trump administration to address national security concerns.

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Negotiations for the acquisition of TikTok by US tech companies like Oracle and Microsoft are gaining momentum. The popular short-video service, owned by the Chinese company ByteDance, is facing intense pressure from the US government due to concerns about data security and user privacy . This process could mark a historic shift in how the app operates in the United States.

The Trump administration has been actively monitoring talks between ByteDance and an investor consortium led by Oracle and Microsoft. According to various sources, if an agreement is reached, Oracle would oversee critical aspects of TikTok, such as its algorithm , data collection , and software updates . This move aims to allay fears that the Chinese government could gain undue access to the data of American users.

A strategic agreement for TikTok

The agreement proposes that ByteDance retain a minority stake in TikTok, but drastically reduce its control and influence over the social network. Oracle, which currently provides much of the app's technical infrastructure, would assume a central role in managing its operations. Microsoft, for its part, would provide financial and institutional support, although its exact role in this transaction is not yet fully defined.

This move is expected to minimize TikTok's reliance on Chinese operations and ensure more transparent and secure handling of US user data. This initiative also responds to the growing tension between the United States and China in the technology and trade sectors.

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Precedents and challenges along the way

Back in 2020, an attempt was made to sell TikTok to US investors in a similar context. On that occasion, Oracle and Microsoft were also involved in the talks. However, the deal ultimately fell through. According to experts, the current negotiations could face similar legal and financial challenges, but this time the more active support from the Trump administration could be a decisive factor.

Legal uncertainty remains a significant obstacle. Several legal experts have questioned the validity of the executive orders issued by Trump seeking to extend the negotiation deadlines, as well as the ability to impose sanctions on companies that allow TikTok to operate on US soil.

The platform, which boasts over 1.700 billion users globally , remains one of the world's most valuable and popular social networks. However, its future in the United States largely depends on the ability of the parties involved to reach an agreement before the deadline imposed by U.S. authorities.

Consequences for users and industry

Meanwhile, TikTok users in the United States face an uncertain future. Although the app remains active, the lack of updates on the App Store and Google Play Store has begun to raise concerns. Some sources have reported that the number of daily active users in the US could be affected if the situation is not resolved favorably.

Furthermore, this case could set a precedent for future conflicts between Chinese technology companies and Western governments. Tensions between the United States and China , exacerbated by trade disputes, appear to be directly influencing how technology and data are regulated.

The ongoing talks between Oracle, Microsoft and ByteDance could determine not only the fate of TikTok in the US market, but also the future of relations between the world's leading tech powers. The coming weeks will be crucial in defining the outcome of this complex situation.