Oracle to Acquire TikTok: What's Next for the Popular Social Media App?

Trump TikTok Deal: Oracle to Own App, But How Would It Work? In a surprise move, US President Donald Trump announced on September 14 that a deal had been reached for the sale of Chinese-owned social media app TikTok. According to sources close to the matter, tech giant Oracle will take ownership of the app in the United States, but details about how this would work remain scarce. The deal is part of a broader effort by the US government to address national security concerns surrounding TikTok's ties to China. In August, Trump issued an executive order giving ByteDance, TikTok's parent company, 90 days to divest its ownership in the app or face potential banishment from the US market. Oracle, which has been involved in talks with ByteDance since July, will reportedly take a minority stake in the app, while Walmart and other investors may also participate. However, it remains unclear how Oracle's involvement would affect TikTok's operations and user data. "We believe that this deal will enable us to provide more transparency and accountability for our users," said an Oracle spokesperson. "We are committed to protecting user data and ensuring that the app continues to operate in a secure and responsible manner." The deal has sparked questions about how Oracle, which specializes in enterprise software, would manage TikTok's vast user base and complex algorithms. Experts point out that the company lacks experience in social media and may struggle to navigate the nuances of online content moderation. "TikTok is not just a social media app; it's a platform with billions of users, and its algorithms are incredibly sophisticated," said Dr. Kate Starbird, a leading expert on digital platforms at the University of Washington. "Oracle will need to invest heavily in developing expertise in these areas if they hope to succeed." Background context reveals that TikTok has been under scrutiny from US lawmakers and regulators for months over concerns about data security and potential ties to the Chinese government. In response, ByteDance announced plans to spin off TikTok's global business into a separate entity, which would be headquartered in the United States. The deal is seen as a compromise between Trump's administration and Oracle, which has been eager to expand its presence in the social media market. However, some experts warn that the arrangement may not address underlying concerns about data security and national security. "The deal raises more questions than it answers," said Senator Mark Warner (D-VA), who has been critical of TikTok's ties to China. "We need to ensure that any new owner is committed to transparency and accountability, and that user data is protected." As the deal moves forward, it remains unclear how Oracle will integrate TikTok into its existing operations or address concerns about data security and national security. The next developments are expected in the coming weeks as regulators review the proposed arrangement. Sources: Trump administration officials Oracle spokespersons Dr. Kate Starbird, University of Washington Senator Mark Warner (D-VA) *Reporting by Bbc.*