Trump to Consider Proposal to Divest TikTok’s U.S. Operations
U.S. President Trump will hold a meeting on Wednesday to consider a proposal to divest TikTok’s U.S. operations from its Chinese parent company ByteDance. The proposal includes the formation of a joint venture with Oracle Corporation and Blackstone Group, with Oracle providing security for U.S. data. Trump indicated that he would consider lowering tariffs on China to ensure Beijing’s support for the sale.
Oracle and Blackstone Reportedly Involved in TikTok Sale Agreement
According to Bloomberg, with only days left until the deadline for TikTok’s sale, U.S. President Trump will meet on Wednesday to consider a proposal to separate TikTok’s U.S. operations from its Chinese parent company ByteDance Ltd. The proposal involves forming a joint venture with Oracle Corporation and Blackstone Group, where Oracle will secure U.S. data while potentially handing over the app’s algorithms to China.
Insiders stated that Trump will consult with Vice President JD Vance and other officials who have been involved in negotiating the forced sale.
Oracle to Provide Security for U.S. Data
Reports suggest that Oracle will acquire a minority stake in the new U.S. entity. According to a previously circulated internal government proposal, Oracle would provide security for U.S. data but might transfer the app’s valuable algorithms to Chinese hands.
As part of a collaboration called “Project Texas,” Oracle has established significant cloud infrastructure to work with TikTok. It is also used to assist the app in blocking sensitive U.S. user data from ByteDance, although the plan ultimately failed to gain approval from Washington regulators.
Trump Considering Tariff Reductions to Facilitate Agreement
Trump must find a buyer for TikTok’s U.S. operations by April 5, or the app will be banned in the U.S.; however, he has indicated a willingness to extend the deadline if necessary. Last year, bipartisan lawmakers passed legislation signed by former President Biden, aimed at addressing concerns over the Chinese government potentially collecting sensitive data from U.S. citizens.
Trump has already extended the deadline from the original January 19. Even if he signs the proposal, it will still require approval from TikTok’s parent company and the Chinese government.
However, he appears unconcerned about the approaching deadline, stating this week that there are many stakeholders interested in the app. He also mentioned that he would consider reducing tariffs on China to ensure Beijing’s support for the sale.
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