Oracle to Acquire 80% Stake in TikTok's US Operations in Surprise Joint Venture Deal

Trump TikTok Deal: Oracle to Own App in Joint Venture In a surprise move, President Donald Trump announced on Saturday that a deal had been reached for the sale of social media app TikTok's US operations. According to sources, tech giant Oracle will own 80% of the new entity, with ByteDance, TikTok's parent company, retaining 20%. The partnership is expected to create a joint venture that will oversee the app's operations in the United States. The deal comes after months of uncertainty surrounding the fate of TikTok, which has been at the center of a high-stakes battle between the US government and ByteDance. In August, Trump issued an executive order requiring ByteDance to sell its stake in TikTok or face potential banishment from the US market. According to Oracle's CEO Safra Catz, "We are excited about this opportunity to partner with TikTok and provide our expertise in cloud infrastructure and security." Catz emphasized that Oracle will play a key role in ensuring the app's data is stored on its servers within the United States. This move aims to alleviate concerns over data privacy and national security. The deal also includes Walmart, which will become a minority stakeholder in the joint venture. The retail giant has expressed interest in using TikTok as a platform for e-commerce and advertising. TikTok's popularity among younger generations has made it an attractive target for investors and advertisers. With its massive user base and engaging content, the app has become a significant player in the social media landscape. The partnership between Oracle and ByteDance is expected to create a new entity that will be responsible for managing TikTok's US operations, including data storage and security. The deal aims to address concerns over data privacy and national security while also providing a platform for e-commerce and advertising. As part of the agreement, ByteDance will retain ownership of TikTok's global operations outside the United States. This move is seen as a compromise between the two parties, with Oracle gaining control of the app's US operations in exchange for its investment. The deal has sparked debate among tech experts and industry observers, who are weighing the implications of this partnership on data privacy and national security. "This deal raises more questions than answers," said cybersecurity expert Bruce Schneier. "We need to carefully examine how Oracle will handle TikTok's data and ensure that it is stored securely within US borders." The Trump administration has yet to comment on the specifics of the deal, but sources suggest that the partnership meets the requirements outlined in the executive order. As the deal takes shape, experts are looking ahead to its potential impact on the social media landscape. "This partnership has the potential to create a new model for data storage and security," said tech analyst Dan Ives. "We will be watching closely to see how it plays out." The current status of the deal is that Oracle and ByteDance have reached an agreement, pending regulatory approval. The joint venture is expected to be finalized in the coming weeks. Background: TikTok has been at the center of a high-stakes battle between the US government and ByteDance since August, when Trump issued an executive order requiring ByteDance to sell its stake in TikTok or face potential banishment from the US market. The app's popularity among younger generations has made it an attractive target for investors and advertisers. Additional Perspectives: Industry experts are weighing the implications of this partnership on data privacy and national security. "This deal raises more questions than answers," said cybersecurity expert Bruce Schneier. "We need to carefully examine how Oracle will handle TikTok's data and ensure that it is stored securely within US borders." The Trump administration has yet to comment on the specifics of the deal, but sources suggest that the partnership meets the requirements outlined in the executive order. Next Developments: As the deal takes shape, experts are looking ahead to its potential impact on the social media landscape. "This partnership has the potential to create a new model for data storage and security," said tech analyst Dan Ives. "We will be watching closely to see how it plays out." *Reporting by Bbc.*