But after several extended deadlines, we are likely closer to seeing a closed TikTok deal. Multiple investors have expressed their interest in purchasing TikTok. If this deal becomes real, TikTok could gain a valuation of $60 billion.
The recently elected U.S. President is expected to announce this week a TikTok deal that will separate the social media platform’s operations from the Chinese parent company ByteDance. It seems that the agreement will involve investors, including Oracle (ORCL.N) and private equity firm Silver Lake.
Under the terms, ByteDance will retain a stake of less than 20%, while TikTok U.S. will be overseen by a combination of its current U.S. and global partners, along with a large group of new investors with no ties to ByteDance.
In a recent statement, the U.S. President, Donald Trump, stated that Oracle executive chairman Larry Ellison and Dell Technologies CEO Michael Dell are 'likely' to be involved.
Oracle is expected to handle TikTok’s security and safety. The company already provides cloud services for TikTok and manages U.S. user data. Oracle also previously tried to buy TikTok in 2020.
As part of the deal, Oracle would copy and secure a new U.S. version of TikTok’s algorithm. The U.S. owners could lease it from ByteDance, and Oracle would retrain it.
ByteDance would have no access to U.S. user data and no control over the U.S. algorithm.
We don’t know for sure if TikTok will have another social media platform dedicated only to U.S. users, or if the app will continue to operate the same. Various rumors suggest that TikTok may be discontinued in the U.S., prompting users to transition to a new social media platform. It remains to be seen whether TikTok will remain the same or if millions of U.S. users will need to transition to another app.
Stay tuned for more updates!
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