A recent executive order by U.S. President Donald Trump has delayed the potential ban on TikTok, but the app’s future in the U.S. remains uncertain.
TikTok’s parent company, ByteDance, will need to give up majority ownership to continue operating in the U.S. Reports suggest that Oracle and other U.S. investors could play a key role in this transition.
ByteDance is expected to keep a minority stake, but Oracle would oversee TikTok’s app collection, algorithms, and software updates, ensuring U.S. control. These changes aim to reduce ByteDance’s influence due to national security concerns.
Oracle is reportedly interested in acquiring a significant stake, with talks between its representatives and the White House ongoing. Microsoft and Walmart have also expressed interest, but no decisions have been finalized.
The main challenge is meeting a federal law requiring ByteDance to divest, severing all operational ties with TikTok and removing any potential access for the Chinese government to exploit TikTok’s data.
Another hurdle is TikTok’s valuation, as it’s seen as a billion-dollar enterprise, which could make the acquisition cost prohibitive. ByteDance also appears unwilling to sell TikTok to avoid a ban. If a deal isn’t reached,
TikTok’s future in the U.S. is in jeopardy, potentially resulting in its removal from app stores and halting its operations. This uncertainty could affect millions of American users who rely on TikTok for various purposes. The situation remains critical as discussions continue.
