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A comprehensive plan has been developed to ensure the continued availability of TikTok within the United States, and this strategy involves significant collaboration with Oracle, a well-known software company, along with a consortium of outside investors. According to a report by NPR, which cites two individuals who possess direct knowledge of the ongoing discussions, the intent is to effectively take control of TikTok’s global operations through this collaborative effort. Among the potential investors engaged in these negotiations is Microsoft, a technology giant that has expressed interest in being part of the solution to address the concerns surrounding TikTok’s ownership.

The White House is currently negotiating a deal that would allow TikTok’s parent company, ByteDance, which is based in China, to maintain a minority ownership stake in the platform. However, this agreement would also stipulate that critical components such as the app’s algorithm, its data collection practices, and the management of software updates would be overseen by Oracle. Notably, Oracle already plays a crucial role in supporting TikTok’s web infrastructure, which adds a layer of familiarity and expertise to their potential oversight role.

According to a source directly involved in the discussions, who requested to remain anonymous due to the sensitivity of the negotiations, the overarching goal is for Oracle to establish a robust monitoring system that will provide thorough oversight of TikTok’s operations. While ByteDance would not be entirely removed from its role, the arrangement is designed to significantly reduce the influence of Chinese ownership over the app, thereby addressing national security concerns that have been raised.

In recent developments, officials from Oracle met with representatives from the White House on a Friday to discuss the intricacies of this potential deal, and a follow-up meeting has already been scheduled for the following week. The source involved in these discussions indicated that Oracle is interested in acquiring a stake in TikTok that could amount to “tens of billions” of dollars. However, the specifics of the deal are still in flux, and many details remain to be finalized.

It is essential to note that TikTok is under pressure to comply with U.S. regulations. A law passed by Congress and upheld by the Supreme Court mandates that TikTok must undertake what is referred to as “qualified divestiture” from ByteDance in order to continue operating within the United States. A congressional staffer involved in the ongoing discussions, who also requested anonymity, emphasized the importance of establishing binding legal agreements from the White House. These agreements would ensure that ByteDance cannot covertly manipulate TikTok’s operations and would be critical in securing lawmakers’ approval for the deal.

“A key part of this negotiation is demonstrating that there is no operational relationship between TikTok and ByteDance, ensuring that the Chinese company does not retain any control over the app,” the congressional staffer stated. “It is vital that there are no backdoors that would allow China to potentially gain access to user data or app functionalities.”

Interestingly, Chinese regulators, who have historically opposed the sale of TikTok, have recently indicated a softer stance regarding ownership changes. They have signaled that they would not obstruct a transaction involving TikTok, stating that such acquisitions “should be independently decided by the enterprises and based on market principles.” While this statement may initially appear vague, negotiators within the White House interpret it as a sign that Beijing is unlikely to impede a deal that would result in American investors acquiring a majority stake in the company.

As these negotiations continue, it remains to be seen how the landscape will evolve, particularly as major tech companies like Apple and Google have yet to reinstate TikTok in their app stores, a situation that adds another layer of complexity to the ongoing discussions surrounding the app’s future in the U.S.