Oracle Among Firms Positioned to Back TikTok Deal as US–China Talks Continue: Report

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Oracle Admits Banning TikTok in the US Could Hurt Its Revenue and Profit
Oracle said a ban on TikTok in the United States might hurt its business. MANJUNATH KIRAN/AFP via Getty Images

Oracle is emerging as one of the key companies set to back a new deal allowing TikTok to remain available in the United States, according to people familiar with the talks.

The move comes as Washington and Beijing continue negotiations over the app's future, with a potential framework agreement reportedly close.

The plan under discussion would involve a group of American investors, including Oracle, Silver Lake, and Andreessen Horowitz, taking a large stake in TikTok's US operations.

Reports suggest US investors could hold around 80% of the new company, while Chinese shareholders would keep the rest, Reuters said.

The board would mostly consist of American members, with one representative appointed by the US government.

A sticking point in negotiations is control of TikTok's recommendation algorithm, a powerful system that determines what videos users see. It remains unclear how much influence ByteDance, TikTok's parent company in China, would retain under the new arrangement.

President Donald Trump confirmed on Tuesday that an agreement between the US and China has been reached to keep the platform available, though he declined to name specific companies.

"We have a group of very big companies that want to buy it," he said, adding that young users and their parents had urged him not to let the app disappear.

China Responds to TikTok Deal, Urges Fair Business Talks

According to CBS News, if the deal goes through, Oracle would oversee American users' data at its Texas facilities.

This follows years of concern in Washington that TikTok could pose a national security risk by giving the Chinese government access to US data or using the app to influence content. TikTok has consistently denied such claims.

The Chinese Embassy in Washington responded by stressing that China would defend its national interests and the rights of its companies but also said it supports business negotiations based on equal terms and market rules.

This deal follows a law passed in 2024 that forced TikTok's parent company ByteDance to either divest from the platform or face a US ban.

The Supreme Court upheld that law, but President Trump has repeatedly delayed its enforcement, most recently pushing the deadline until December 16.

Negotiators have also considered creating a separate app for US users, with its own data systems and algorithm. Testing of such a platform is already underway, according to earlier reports.

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