The current US-based investors of several of Tiktok's Chinese parent ordinances are reportedly trying to temper national security concerns and avoid an upcoming ban by joining Larry Ellison's Oracle in a potential deal on video sharing apps.
General Atlantic, Susquehanna, KKR and Court were able to “get additional stakes” in the spin-off version of Tiktok's US business. Financial Times He reported on Friday, citing multiple sources who are well-versed in negotiations.
The company will try to buy Chinese investors as part of the transaction, sources said.
Already serving as Tiktok's leading cloud computing partner, Oracle will gain ownership of US companies and help ensure that data from over 170 million American users is secure as part of a Trump-backed transaction.
The China-based integration is trying to maintain ownership of reformed U.S. companies in Tiktok, a source told the outlet.
That could be a sticking point for Congress, which passed a law requiring the sale of fire to prevent the Chinese Communist Party from exploiting the app for its own purposes.
Representatives from the White House, Tiktok, Atlantic General, Susquehanna and Court did not immediately return requests for comment on the report. KKR declined to comment.
President Trump will need to find a buyer for Tiktok after delaying the White House's enforcement of the ban until the 75th, and issued an executive order.
The parliamentary ban came into effect temporarily after the ordinance failed to meet the January 19 sale deadline.
The Congress and the Justice Department say that Tiktok, led by CEO Shou Zi Chew, is effectively a tool for the Chinese Communist Party, capable of spying on American users and subtly affecting public opinion through recommendation algorithms. The company denied the allegation.
Trump has vowed to “save” the app and said he hopes the US will gain 50% ownership of the app. Apart from Trump, all transactions must be approved by China. China says it will not sell the recommended algorithms for its app.
Oracle is set to take a leading role in the Tiktok sale.
The company previously collaborated with Byte Dance on “Project Texas.” This is an attempt to convince Congress that the app is safe because American user data is stored on Oracle's US servers.
Under potential deals alongside major US investors, Oracle once again pledges to ensure that the app is safe, but allows ByteDance to continue to oversee its algorithm, FT said.
Trump has led Vice President J.D. Vance to the frontlines the talks, saying that he has recently spoken with “four different groups” that are interested in Tiktok.
The president also says he hopes Ellison and Oracle will be involved in the contract.
In January, Bill Ford, CEO of the Atlantic General and director of the deadline committee, suggested there was an option that could satisfy U.S. authorities.
Still, the Trump administration could face a difficult battle to convince Congress to accept the deal if it is involved in Tiktok's operation.
As reported by On the Money, posted earlier this week, Sen. Tom Cotton, who leads the Senate Intel Committee, is a key obstacle.
Cotton told Trump officials he would not register for transactions that are not compliant with the law.
