The future of TikTok in the United States has been a rollercoaster of political drama, high-stakes business negotiations, and legal battles. With a potential TikTok deal on the horizon, users and investors are asking critical questions: Who is buying the viral video platform? Is Oracle the new owner? And what was the impact of President Trump’s executive order? This blog breaks down the latest developments in the ongoing saga of the US app valued at a staggering $14 billion.
The “TikTok Rapture”: Why Is TikTok Getting Banned?
The term “TikTok rapture” emerged online, humorously describing the fear of the app suddenly disappearing. This stems from longstanding bipartisan concerns in Washington about the national security risks posed by TikTok’s Chinese parent company, ByteDance. The primary fear is that the Chinese government could access user data from millions of Americans, potentially using it for espionage or influence operations.
These concerns prompted the US government to threaten a complete ban on the app unless ByteDance divested its US operations. This ultimatum set the stage for a complex and unprecedented TikTok deal to transfer ownership to American hands.
Who Is Actually Buying TikTok?
The question of “Who is buying TikTok?” has a complex answer. ByteDance is not selling TikTok in its entirety. Instead, it is being forced to create a new, independent US-based company that operates TikTok domestically.
The leading proposal, which gained significant traction, involves a partnership rather than a straightforward sale. The key players are:
- Oracle: The tech giant was chosen as TikTok’s “trusted technology partner.” This means Oracle would likely host all US user data on its cloud servers to ensure data security meets US government standards.
- Walmart: The retail titan also expressed a major interest, with plans to join as a commercial partner, potentially integrating e-commerce capabilities directly into the platform.
Therefore, a consortium including Oracle and Walmart, along with existing US investors, would hold a significant stake in the new company, TikTok Global, effectively controlling its operations.
Is Oracle Buying TikTok? Clarifying the Partnership
So, is Oracle buying TikTok? Not exactly. Oracle is not acquiring TikTok outright in a traditional sense. Its role is more strategic. The core of the proposed TikTok deal positions Oracle as the guardian of US data and critical technology infrastructure. This structure is designed to alleviate national security concerns while allowing ByteDance to retain a stake in the valuable enterprise.
This unique arrangement stopped short of a full sale but was intended to be sufficient to comply with US government demands for data sovereignty and operational independence from China.
Trump Signs TikTok Order: The $14 Billion Catalyst
The entire process was set in motion by executive action. In August 2020, then-President Donald Trump signed an executive order giving ByteDance 90 days to divest its US TikTok operations. The order explicitly cited the app as a national security threat. This directive effectively put a $14 billion price tag on the US business and forced ByteDance to the negotiating table.
While the legality of the order was challenged in courts, its impact was undeniable. It created a hard deadline and accelerated negotiations, making the creation of a US-led TikTok deal a top priority for ByteDance to avoid a total ban in one of its largest markets.
Zuza and the User Perspective
Amid the corporate and political maneuvering, users like the popular creator “Zuza” (representing millions of content creators) faced uncertainty. A TikTok ban would disrupt livelihoods, communities, and a vibrant cultural ecosystem. The potential TikTok deal is, for them, a lifeline—a hope that the platform they’ve built careers on will remain accessible and stable. The resolution of this saga is not just about corporate ownership; it’s about the future of digital culture and creator economies.
The Current Status
The situation remains fluid. While the initial urgency has shifted with the change in administration, the underlying security concerns persist. The Biden administration has continued to review the risks posed by foreign-connected apps. The proposed partnership with Oracle is still a key part of the discussion, but the path forward continues to involve careful negotiation and regulatory approval. The story of who ultimately controls TikTok in the West is still being written.
Disclaimer: The information contained in this article is for general news and informational purposes only. While we strive to provide accurate and up-to-date content, the details of corporate deals and government policies are subject to change. Thriver Media makes no representations or warranties of any kind regarding the completeness or reliability of this information.
