Software firm Oracle shows interest of purchasing TikTok

Software firm oracle is reportedly in talks with the White House to run TikTok.

That’s according to a report Sunday (March 16) by Politico, which notes that there’s still a roadblock to the deal: concerns about the role TikTok’s Chinese founders will play in the video sharing app’s future in the U.S.

The news outlet was informed by sources that Vice President JD Vance and national security adviser Mike Waltz are leading the negotiations on President Donald Trump's behalf. One source said that these discussions are in the advanced stages.

According to Politico, one of the sources said the deal would require the government to rely on Oracle to oversee the data of American users and make sure the Chinese government doesn’t have a backdoor to it — a promise this source warned would be impossible to uphold.

“You still have this [algorithm] controlled by the Chinese even if the Oracle deal moves forward. That means all you are doing is saying ‘trust Oracle’ to disseminate the data and guarantee there is no ‘back door’ to the data,” that person told Politico.

For example, if TikTok’s algorithm isn’t entirely rebuilt by its American owner or if TikTok’s Beijing-based parent firm ByteDance maintains a role in its operations, the algorithm could still have vulnerabilities that could be exploited by the Chinese government, the report said.

In an effort to alleviate concerns regarding national security, TikTok granted Oracle access to its algorithm, source code, and content moderation materials in 2023. This effort was dubbed project Texas. The proposed deal follows suit. However, these concerns were never addressed, which is why Congress passed legislation last year requiring ByteDance to either acquire TikTok or acquire the popular app by January. 19. That deadline came and went with no deal, leading TikTok to briefly go dark.

Then Trump took office and halted the ban, giving ByteDance until April 5 to find a new owner for TikTok. Oracle’s name had been floated as possible ownersoon after Trump extended the deadline. The president stated last week that four potential buyers were interested in TikTok. Writing about the ban earlier this year, Runfarbiz noted the impact TikTok can have on driving revenue for businesses and entrepreneurs who use it to sell their wares.

Research by Runfarbiz Intelligence shows that nearly 80% of millennials and Gen Z consumers turn to social media for financial advice, while shoppers from Generation Z are 117% more likely to purchase products from influencers.

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