ByteDance has approximately two weeks to prevent a renewed US ban on its video app TikTok, with indications suggesting that cloud computing giant Oracle (ORCL) may play a significant role. ByteDance must divest TikTok to comply with a federal mandate, but received a 75-day reprieve from President Trump. If no buyer is found for TikTok’s US operations, the ban will take effect on April 5. Vice President JD Vance indicated a high-level agreement addressing US national security concerns is likely by early April. President Trump mentioned four bidders but did not name them. Potential buyers previously discussed include Microsoft (MSFT), AI startup Perplexity, a coalition of billionaire investors, and the US government. Oracle, TikTok’s primary cloud provider, has re-emerged as a prominent contender. Oracle co-founder Larry Ellison and President Trump have a history of collaboration, including a previous attempt to purchase TikTok during Trump’s first term. Oracle began routing TikTok’s US traffic through its cloud in 2022 as part of “Project Texas,” aimed at storing American data domestically. Reports suggest Oracle could safeguard Americans’ data on TikTok in exchange for a stake, while ByteDance retains control of the app’s algorithm. TikTok CEO Shou Zi Chew has opposed relinquishing the app’s proprietary algorithm. Another scenario involves major non-Chinese investors in ByteDance increasing their stakes and acquiring TikTok’s US operations, with Oracle ensuring US user data remains protected. These investors include Jeff Yass’ Susquehanna International Group and Bill Ford’s General Atlantic. TikTok’s parent company, ByteDance, operates under Chinese law, raising US intelligence concerns about data security and potential backdoor access to US citizens’ information. Former President Biden signed legislation requiring TikTok to divest or face a nationwide ban, which the US Supreme Court upheld. The law effectively prohibits app stores and cloud services from offering TikTok unless controlled by a non-adversarial country. TikTok briefly shut down on January 20, Trump’s first day back in office, but Trump delayed enforcement via executive order, opening a 75-day window for negotiations. Trump has expressed openness to an extension if a deal isn’t reached by the deadline. President Trump has signaled support for Oracle’s involvement, suggesting a deal where Oracle buys TikTok and gives half to the US government in exchange for a permit. However, Trump has also denied talks with Oracle regarding TikTok.

ByteDance Faces Imminent TikTok Ban: Oracle Emerges as Key Player in Potential Sale
ByteDance has approximately two weeks to prevent a renewed US ban on its video app TikTok, with indications suggesting that cloud computing giant Oracle (ORCL) may play a significant role. ByteDance must divest TikTok to comply with a federal mandate, but received a 75-day reprieve from President Trump. If no buyer is found for TikTok’s…
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