Will Oracle Save TikTok? ByteDance Races to Beat U.S. Ban Deadline

ByteDance, the Chinese company behind TikTok, is scrambling to keep its app available in the U.S. With an April 5 deadline approaching, Oracle is emerging as a key player in a deal that could resolve national security concerns and prevent a ban.

The U.S. government had previously demanded ByteDance sell TikTok's U.S. operations, citing fears over Chinese data access. On his first day back in office, President Trump paused the enforcement for 75 days, providing a temporary window for negotiations. Vice President JD Vance recently hinted that a deal could be reached soon.

Oracle Steps Into the Spotlight

Oracle, led by tech mogul Larry Ellison, has been closely involved with TikTok for years as its primary cloud provider. In 2022, TikTok rerouted its U.S. data through Oracle servers under a project called "Project Texas" to address security concerns. Now, Oracle is being considered for an even bigger role — protecting U.S. user data while potentially gaining a stake in TikTok.

ByteDance, however, wants to keep control of TikTok’s proprietary algorithm, which powers the app’s content recommendations. Reports suggest that Oracle's role would focus on data protection while ByteDance retains its technological crown jewel.

Investors Eye a Restructure

A potential solution on the table involves ByteDance’s current U.S. investors increasing their stakes in TikTok to reduce Chinese ownership below 20%. Firms like Susquehanna International Group and General Atlantic are reportedly interested in stepping up, which could help TikTok comply with U.S. regulations.

Under this structure, Oracle would manage sensitive data, ensuring it remains secure and inaccessible to foreign entities. This setup could satisfy U.S. security concerns while allowing TikTok to continue operating.

National Security Concerns Take Center Stage

For years, U.S. officials have voiced concerns that the Chinese government could force ByteDance to hand over TikTok user data. Chinese law mandates that companies comply with government requests for information, raising red flags for American regulators.

In response, Congress passed a law requiring ByteDance to divest TikTok or face a ban. Although the Supreme Court upheld the ruling, Trump’s executive order temporarily halted the ban, allowing ongoing negotiations to continue.

What Could Happen Next for TikTok

President Trump has suggested he might extend the 75-day pause if progress is evident. However, a permanent reversal of the ban would require congressional approval.

While Trump previously denied any involvement in TikTok's fate, he recently expressed support for Oracle's role. During a press conference with Larry Ellison, Trump floated the idea of Oracle acquiring TikTok, even suggesting a profit-sharing agreement with the U.S. government.

With the deadline just weeks away, Oracle, ByteDance, and U.S. regulators are working toward a resolution. Whether a deal can be struck in time will determine if TikTok remains available to its millions of American users.

Also Read: Trump Says TikTok Might Be Sold Soon—Four Buyers Interested