The White House is intensifying its review of Oracle (ORCL) Deal to Operate TikTok, according to a report by Politico. The potential deal, which could see Oracle manage the app’s U.S. operations, is under close scrutiny, with significant concerns regarding the role of TikTok’s Chinese creators in the company’s ongoing U.S. operations.
Negotiations Led by Vice President JD Vance and National Security Adviser Mike Waltz
Sources familiar with the talks revealed that the discussions are being led by Vice President JD Vance and National Security Adviser Mike Waltz, signaling the high-level nature of the negotiations. The talks are said to be in advanced stages, with growing pressure to reach a resolution. However, senators have reportedly expressed interest in being kept informed on the developments, further highlighting the importance of the deal.
Concerns Over Chinese Influence and Data Security
A key issue surrounding the Oracle Corporation (NYSE:ORCL) deal is the continued influence of TikTok’s Chinese parent company, ByteDance (BDNCE), in the app’s operations within the U.S. A third source involved in the talks mentioned that the U.S. government would need to rely on Oracle to oversee U.S. user data and ensure that China’s government does not have access to it. However, the source also expressed doubts about Oracle’s ability to fully guarantee that there would be no potential backdoor for Chinese influence, adding to the complexity of the negotiations.
Awaiting Official Statements
Neither Oracle Corporation (NYSE:ORCL), TikTok, nor its parent company ByteDance (BDNCE) immediately responded to requests for comment regarding the ongoing talks. The White House also could not be reached for a statement at the time.
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