Oracle, Oracle Founder Larry Ellison, and Others Agree to Control TikTok in U.S., Alleviating National Security Concerns
In a proposed deal, a newly formed U.S.-based joint venture backed by tech giant Oracle and private equity firm Silverlake is set to assume control over the popular short-video app TikTok. This transaction, which reportedly adheres to both U.S. and Chinese legal standards, will not involve the U.S. government taking an ownership stake or a seat on the board.
The new venture stands to acquire a copy of TikTok’s prized asset – its content recommendation algorithm – which will be re-trained using American data. Software powerhouse Oracle is slated to serve as the company’s “security provider,” overseeing aspects such as algorithm functionality, app updates, and management of user data.
According to a senior White House official, this deal will safeguard TikTok for its 170 million American users, ensuring their safety and security while preserving thousands of jobs and small businesses that rely on the platform for promotion.
During a recent interview on FOX News Channel’s The Sunday Briefing, President Trump named Larry Ellison (Oracle), Michael Dell (founder of Dell Technologies), and Lachlan Murdoch (heir to Rupert Murdoch’s media empire) as key figures involved in the deal. Further details regarding other investors remain undisclosed at this time.
Neither Oracle, Dell, Silverlake, nor News Corp. responded to requests for comment from NPR, while FOX declined to comment on record.
Rising concerns about national security have accompanied TikTok’s growing popularity over the past few years, with some analysts and lawmakers expressing apprehension over the potential risk of Beijing pressuring the app’s Chinese owner ByteDance to spy on or influence its American users.
Last year, Congress passed a law requiring ByteDance to divest or face a potential ban in the U.S. The Supreme Court upheld TikTok’s free speech challenge to the ban, and on Inauguration Day, Trump signed an executive order suspending the ban’s enforcement.
The White House official anticipates President Trump will sign a new executive order this week, declaring that the deal terms satisfy America’s national security needs and comply with relevant legislation. The executive order is expected to extend an enforcement pause on the related law to allow investors and the company time to finalize implementation documents. The deal’s closing is anticipated 120 days after signing.
The official noted that negotiations over the algorithm’s fate were challenging, requiring a compromise that met both U.S. legal requirements and Chinese domestic laws. The official stressed that the algorithm will be continuously monitored to ensure it operates appropriately and is not utilized for malicious purposes or undue influence.
In recent months, the Trump administration has focused significant attention on the tech industry, pushing companies like Apple and Nvidia to increase domestic manufacturing efforts and brokering deals to keep TikTok operational. The administration has also taken a more active role in tech-related business matters.
Earlier this summer, the U.S. government announced plans to take a roughly 10% stake in chipmaker Intel as part of its initiatives to boost chip manufacturing within the United States. Additionally, the Trump administration revealed intentions to capture a 15% share of Nvidia’s H20 chip sales to China.