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Proposed TikTok Solution Would Have Oracle Provide Data Security
ORCLOracle(ORCL) PYMNTS.com·2025-03-18 19:38

Core Viewpoint - The ongoing discussions regarding TikTok's operations in the U.S. involve potential deals to ensure user data security while maintaining the app's functionality, with Oracle being a key player in these negotiations [1][3]. Group 1: Proposed Deal Structure - One proposal includes Oracle taking a small stake in TikTok and collaborating with U.S. buyers to prevent Chinese government access to user data [1]. - The proposal aims to keep TikTok's algorithms in China while ensuring that a U.S. version of the app does not have vulnerabilities that could be exploited by the Chinese government [2]. - The proposal's security measures are questioned in comparison to an existing partnership known as Project Texas, which also focuses on securing U.S. user data [3]. Group 2: Stakeholders and Bidders - Oracle is reportedly in advanced talks to manage TikTok, but concerns remain regarding the influence of the app's Chinese founders on its U.S. operations [4]. - Three known bidders for TikTok's U.S. operations include a group led by billionaire Frank McCourt and Reddit co-founder Alexis Ohanian, a group with tech entrepreneur Jesse Tinsley and YouTube star MrBeast, and a merger offer from Perplexity AI [5]. Group 3: Regulatory and Political Context - Vice President JD Vance indicated that a deal is expected to be reached that would allow TikTok to continue operating in the U.S. while addressing national security concerns [6]. - A U.S. law mandated TikTok's sale or ban by January 19, but the deadline was extended by President Trump upon taking office [6].