WASHINGTON: Donald Trump administration in the U.S. is reportedly working on a plan to keep TikTok operational in the United States by involving Oracle and a group of outside investors, including Microsoft, to manage the App. According to National Public Radio, TikTok's Chinese parent company, ByteDance, would hold a minority stake under the proposed deal, but Oracle would oversee key operations such as the app's algorithm, data management, and software updates.

Discussions between White House officials and Oracle executives reportedly took place on January 24, with another meeting planned this week. The deal could allow TikTok’s the US-based investors to hold a majority stake. However, the terms are still being finalized and may change.

Oracle already manages part of TikTok's server infrastructure and, under the agreement, would directly oversee how TikTok handles its data and content. This move is intended to address security concerns related to ByteDance's ties to the Chinese government.

Microsoft is also part of the ongoing discussions after its earlier attempt in 2020 to acquire TikTok in partnership with Oracle and Walmart failed. Walmart, however, is no longer part of the current negotiations.

TikTok continues to face scrutiny over its data handling practices, with U.S. officials expressing concerns that ByteDance could share user information with Chinese authorities. Globally, the app is dealing with challenges such as a ban in India and lawsuits over child privacy violations.

TikTok's Valuation and Sale Price
Reports suggest that ByteDance expects at least USD200 billion for TikTok, a price that might be beyond the reach of some investor groups currently bidding.

In the past, TikTok temporarily ceased operations in the United States to comply with federal laws requiring ByteDance to reduce its ownership of the app. After the 2020 U.S. elections, the Trump administration extended the deadline for compliance by 75 days.

The proposed plan now being discussed involves Oracle taking control of TikTok’s global operations, while ByteDance keeps a minority stake. Oracle, which already supports TikTok’s web infrastructure, would also oversee data handling and software updates.

Back in 2020, Trump supported a similar deal involving Oracle and Walmart, but it fell apart due to disagreements over the app’s valuation. Walmart is no longer involved in the current talks, while Oracle reportedly aims to secure a stake worth "tens of billions" in the app.