Oracle considers small stake in TikTok’s US operations, security role - Bloomberg

Investing.com -- Oracle Corp (NYSE:ORCL). is contemplating a proposal to acquire a minor stake in TikTok’s US operations and provide security assurances, while the app’s influential algorithm might remain under Chinese control, according to a report from Bloomberg, citing individuals familiar with the situation. The proposal, which was discussed within the Trump administration last week, includes Oracle collaborating with US buyers to ensure user data safety.

The proposed plan includes assurances that an updated US version of TikTok would not have a backdoor that the Chinese government could exploit. This plan comes as a deadline looms to reach a deal to prevent a TikTok ban under a US law that mandates its Chinese owner, ByteDance Ltd., to divest in the name of national security. President Donald Trump issued an order on his first day in office, delaying enforcement until April 5 to allow time for a deal, and he has advocated for a sale that would permit TikTok to continue operating in the US.

As part of a partnership known as Project Texas, Oracle currently collaborates with TikTok to secure US user data. It’s uncertain what other changes might occur to the app or its communication with Beijing-based ByteDance under the proposed plan, which is still tentative and could change in detail, according to the sources.

The proposed deal would require approval not only from the US President but also from TikTok’s parent company and the Chinese government. Allowing ByteDance to retain the algorithm could simplify winning over the company and Chinese authorities, but it might not comply with the law signed last year by President Joe Biden. It could also leave unresolved US concerns that China could access sensitive data or use the app for propaganda dissemination — allegations that ByteDance and Beijing officials have previously denied.

According to a person familiar with the matter, the Chinese government is aware of Oracle potentially providing a security backstop and acquiring a small stake. Beijing authorities would likely approve a deal involving Oracle as long as TikTok’s algorithm remains fully under China’s control, the person stated.

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