Acquisition of TikTok by Oracle

Target

TikTok's US operations/unit

Event Type

Acquisition (potential/ongoing)

Primary Acquirer

Oracle

Acquisition Mandate

US government directive for ByteDance to divest its US unit or face a national ban

Oracle's Existing Role

Cloud provider for TikTok's US data, host of American user data via Project Texas, provider of security assurances for user data

Key Technology Involved

Monolith algorithm

Parent Company of Target

ByteDance

Potential Acquirers/Consortium Members

Oracle, Blackstone, a16z (Andreessen Horowitz), Silver Lake Management LLC

Proposed Ownership Structure (example)

New investors acquire 50% of TikTok, existing US investors retain 30%, ByteDance owns 20% (with Oracle taking a minority stake); or a consortium (including Oracle, Silver Lake, Andreessen Horowitz) controls 80% of TikTok's US business

2020

2020-09-16

2021-01-19

2022

March/April (unspecified year)

Should the deal follow the same format as the previously rejected April bid, the new investors would acquire 50 percent of TikTok, while existing US investors would retain 30 percent, with ByteDance owning just 20 percent. Oracle, meanwhile, would take a "minority stake" in operations and "provide security assurances for user data." TikTok's US data is hosted on Oracle Cloud, with the company having migrated to the provider in 2020 in an effort to reduce scrutiny. [...] # Home News The Investment & Markets Channel # Oracle, Blackstone, a16z back in the running to buy TikTok - report Group tries again despite previous bid stalling By : Georgia Butler Comment A consortium of companies, including Oracle, Blackstone, and a16z (Andreessen Horowitz), is back in the running to acquire TikTok. As reported by Bloomberg and citing a person familiar with the matter, the group is allegedly the buyer revealed by President Donald Trump last weekend. [...] The sale of TikTok has been legally mandated since former President Joe Biden directed owner ByteDance to divest its US unit by January 19 or face a national ban. Trump has since extended the deadline three times, currently not set to expire till mid-September. According to the White House Press Secretary Karonline Leavitt, discussions are still ongoing.

TikTok’s US operations would be acquired by a consortium that includes Oracle Corp., Andreessen Horowitz and private equity firm Silver Lake Management LLC under a deal President Donald Trump is set to discuss with Chinese President Xi Jinping this week. [...] The framework agreement, unveiled on Monday by senior US and Chinese officials after two days of talks in Madrid, would create a US-based version of the popular social media app. Oracle, venture capital firm Andreessen and Silver Lake will all hold stakes in the new venture, according to people familiar with the matter. Before it’s here, it’s on the Bloomberg Terminal Bloomberg Terminal LEARN MORE ### More From Bloomberg President Trump Departs Morristown Airport En Route To Washington, DC

The new details about the deal come after U.S. Treasury Secretary Scott Bessent said Monday that the U.S. and China have reached a “framework” deal for TikTok. Bessent said Tuesday that commercial terms had been in place since March or April, but the Chinese put it on hold after Trump’s “liberation day” tariff blitz. Oracle has been floated as a potential investor or buyer of TikTok for months. [...] The framework agreement for the social media platform TikTok will include new investors as well as existing investors in the platform’s Chinese parent company ByteDance, sources told CNBC’s David Faber. The deal is expected to close in the next 30 to 45 days, according to the sources, who asked not to be named because the details of the negotiations are confidential. As part of the agreement, Oracle will keep its cloud deal with the platform, the people said. [...] Reuters reported in January that the White House picked Oracle to handle TikTok’s data collection and software updates as part of a deal. Trump has previously said he’d be open to Oracle Chairman Larry Ellison buying TikTok in the U.S. ## Don’t miss these insights from CNBC PRO

While Oracle has emerged as aleading contender to acquire TikTok, other suitors have also expressed interest in buying the social media company, from a group of investors led by billionaireFrank McCourt Jr. toMicrosoft (MSFT), Perplexity AI, and YouTuber Mr. Beast. Story Continues [...] Politicoreported in March that the White House was considering a deal from software giant Oracle to run TikTok, but that dealcould leave ByteDance some control over the app, according to the Information. Oracle already has a relationship with TikTok, and its servers have been used tostore TikTok's American user data as part of an initiative calledProject Texas since 2022. [...] A US buyer for TikTok has not been officially named. The Wall Street Journal said Tuesday, citing unnamed sources, that a consortium of investors, including Oracle, Silver Lake, and Andreessen Horowitz, would control TikTok's US business with an 80% stake under the current framework. TikTok's existing US users would be asked to move to a new app the company is testing, and Oracle would handle the user data on its servers in Texas. Oracle did not respond to Yahoo Finance's request for comment.