Big Tech Players Emerge as Likely Partners for TikTok US
Oracle, Microsoft and Amazon are among those looking at partnering with the app.
Aliver
A quick check-in on the state of TikTok sale negotiations in the U.S.
With the app technically banned in the U.S., under the Biden-approved “Protecting Americans from Foreign Adversary Controlled Applications Act,” President Trump is now seeking to find an alternative solution to avoid a full ban of the platform, while also deriving benefit for the U.S. and American partner companies.
So what are the options on that front?
Here are some of the potential U.S. TikTok deals in discussion:
The main name that continues to come up is Oracle, with Oracle already facilitating the local operations of the app. Oracle CEO Larry Ellison has an established relationship with Trump, which likely gives the company an in, if it wants it, though Trump noted late last month that he has not personally spoken to Ellison about a TikTok deal. Even so, Oracle has reportedly been involved in various discussions with the Trump administration about taking a stake in the app. Amazon is also looking at a possible TikTok deal, with a view to using TikTok’s reach to promote Amazon products. Amazon is already working with TikTok on similar in-app listings. Microsoft has also reportedly been in discussions about the app, though Microsoft hasn’t publicly discussed any such details as yet. There was no mention of TikTok in Microsoft’s recent earning call. Various investor consortiums led by YouTuber MrBeast and Employer.com founder Jesse Tinsley, among others, are reportedly inquiring about the app, but it’s not clear whether they’re realistic bidders in the race. X owner Elon Musk is reportedly not interested in buying the app.So it seems, at least right now, that one of the major players will eventually emerge as the best suitor for TikTok in the U.S., in order to facilitate a deal to keep it in operation.
However, TikTok’s parent company ByteDance is still seeking an alternative plan, in which it would remain in control of the app. According to reports, ByteDance representatives met with White House officials last week, in which they proposed a joint venture with U.S. investors, which may or may not involve investment from the government itself.
That would theoretically enable joint control of the app between the U.S. and China, though it’s unclear, at this stage, what the U.S. government will be seeking from the deal.
That’ll now come down to Vice President J.D. Vance, who’s been put in charge of negotiating a TikTok sale. Trump will still make the final call, but Vance has been tasked with organizing the best deal for the U.S., in order to keep TikTok in operation.
But time is short. Trump granted TikTok a 75-day extension from its original January 19th deadline, which means that they now have only 52 days left to negotiate a new arrangement.
It seems likely, given the business opportunities at stake, that a new deal will be made, but there is still a solid chance that TikTok will still be cut off from the U.S. by April.
