Oracle Buys Tiktok

Throughout the 2020s, threats of the platform TikTok shutting down permanently in the United States have become more prevalent with each passing year. TikTok’s developer, ByteDance, has faced controversies over privacy concerns due to its ties to China, which are seen as national security threats by the US government. The Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), signed into law by President Biden, applied to ByteDance and its subsidiaries, including Tiktok. The proposal stated that Tiktok would be banned by January of 2025 if management did not shift and continued to be perceived as a threat. Although the timeframe was pushed back by President Trump, the looming threat of its shutdown continued to hang over the platform. However, US business is now being sold to several investors, such as Oracle Corporation, to ensure that it will continue to be operable in the future. 

According to the deal, Byte Dance is set to keep a minority stake in the app but will no longer control key operations in the United States. Over 80% of assets will be sold to several American companies, including Oracle, Silver Lake, and MGX at 15% each. TikTok’s algorithm will be copied and retrained using only data from American users, with Oracle taking the majority of responsibility for the storage and safekeeping of American data. With the deal expected to close on January 22, 2026, the era of continuous uncertainty may finally come to an end. Throughout the transaction, the app will stay fully available for users and work predominantly the same, with the security of user data drastically increasing. As stated by white House Press Secretary Karoline Leavitt, the deal will “Protect the data from surveillance by foreign adversaries.”

Although the sale of TikTok is set to improve the app and its security, there are several proposed risks: Oracle’s founder, Larry Ellison, is a Trump supporter. This means that because of the shift in management, President Trump may have control over one of the most important information platforms in the U.S. Powerful leaders often aim for control over the media above all else. Recent actions from the Trump administration fail to prove otherwise, including lawsuits against both The New York Times and CNN, two prominent news organizations. With the sale to Oracle, Trump's political backers are the current investors in this new entity. All of that being said, TikTok has a large safety team and management structure. Users’ safety is a strategic priority for the app, and many organizations would need to be on the same page to enact any major disruption due to Trump's power over the platform. In summary, more analysis is needed to really consider political implications. There are simply so many unknowns regarding what the shift in platform ownership will look like in terms of content governance.

As TikTok enters this new era of US-based ownership, questions about political influence are only going to increase. Although security concerns may ease, the platform’s future stability will depend on transparency and how power is exercised over the coming months.