• Oracle and Microsoft are in talks with the Trump administration to take over TikTok, allowing ByteDance to retain a minority stake.
  • Oracle would oversee TikTok’s algorithm, data, and software updates, while U.S. investors would hold a majority stake. ByteDance values TikTok at $200 billion.
  • Perplexity AI has proposed merging with TikTok U.S. under a new U.S.-based entity, "NewCo."

The Trump administration is at the center of ongoing negotiations over TikTok's U.S. operations, with Oracle and Microsoft emerging as key players in a proposed takeover aimed at reducing Chinese ownership.

According to NPR, the deal could allow ByteDance, TikTok’s Chinese parent company, to retain a minority stake, while Oracle would oversee critical operations such as data collection, algorithm management, and software updates.

Meetings between White House officials and Oracle executives have reportedly taken place, with more discussions scheduled next week. Under the proposed terms, American investors could own a majority stake in TikTok.

“The goal is for Oracle to effectively monitor and provide oversight with what is going on with TikTok,”

said a source cited by NPR, adding that ByteDance’s role would be minimized. ByteDance is reportedly seeking $200 billion for TikTok, posing a challenge for investor groups.

Meanwhile, U.S.-based startup Perplexity AI has submitted a competing proposal for TikTok. Perplexity suggests merging its operations with TikTok U.S. under a new entity called "NewCo."

According to Reuters, the plan includes a future IPO that would allow the U.S. government to own up to 50% of the new entity. ByteDance would retain control over TikTok’s recommendation algorithm, while Perplexity investors would receive equity in the new structure.

TikTok briefly went offline in the U.S. earlier this year to comply with federal law requiring ByteDance to divest. President Trump extended the timeline by 75 days and recently commented that he is “in talks with multiple people” regarding TikTok’s future, including Oracle Chairman Larry Ellison and Elon Musk.

Edited by Harshajit Sarmah