TikTok’s fate in the United States hangs in the balance as the popular video-sharing app navigates President Donald Trump’s executive order to ban the app and the subsequent pursuit of potential buyers. With a bidding war in the making, several players have emerged as contenders to acquire TikTok’s US operations. Here’s a closer look at the key players and what’s at stake.
Oracle: A Front-runner with Ties to Trump
Oracle, the cloud computing giant led by Trump ally Larry Ellison, has emerged as a frontrunner in the race to acquire TikTok. According to NPR, Oracle is working with the Trump administration on a plan that would give the company control over TikTok’s global operations, including its algorithm and data collection. ByteDance would retain a minority stake under this arrangement.
Oracle already hosts TikTok’s US user data and was a key player in the failed “Project Texas” negotiations in 2022 rejected by the government. While Trump previously approved a deal for Oracle and Walmart to acquire a 20% stake in TikTok in 2020, it never materialized. The president’s current stance on Oracle’s involvement remains unclear.
Microsoft: A Familiar Face in the TikTok Saga
Microsoft, another tech giant, has resurfaced as a potential investor in TikTok’s future. According to the same NPR report, Microsoft is among the “other potential investors” involved in talks with Oracle. Trump confirmed Microsoft’s interest, stating, “I would say yes,” when asked if the company was interested in buying TikTok.
Microsoft’s involvement in the TikTok saga is not new. In 2020, the company attempted to acquire TikTok’s US business, but the deal fell apart abruptly. Microsoft CEO Satya Nadella later described it as “the strangest thing I’ve ever sort of worked on.”
Perplexity AI and the US Government: An Unconventional Proposal
Perplexity AI, an artificial intelligence company, has proposed an unconventional deal for TikTok. According to the Associated Press, the company is floating a plan that would give the US government up to a 50% stake in a new entity created by combining Perplexity, TikTok’s US operations, and New Capital Partners. This entity would go public with an initial offering of at least $300 billion.
Under this plan, ByteDance would retain a minority stake and contribute TikTok’s US business without the proprietary algorithm that determines what users see on the app. However, the viability of this proposal remains uncertain.
Other players, such as YouTuber MrBeast and a group called Project Liberty led by investor Frank McCourt and “Shark Tank” star Kevin O’Leary, have also expressed interest in acquiring TikTok, though the seriousness of their bids is unclear.
As the situation evolves rapidly, it’s evident that both the US government and ByteDance are more open to negotiations than in the past. While the potential buyers aim to hammer out a viable deal, TikTok’s future in the US remains uncertain, with the app still unavailable in app stores and the possibility of it going offline again.
This article originally appeared on Engadget at https://www.engadget.com/social-media/what-will-happen-to-tiktok-a-look-at-the-potential-buyers-000110723.html?src=rss
