TikTok's parent company and Oracle have agreed to a takeover deal that has the Treasury Department's approval, NBC News reports.
After suggesting the Chinese-owned video sharing app was a national security risk, President Trump ordered TikTok's owner ByteDance to find a buyer for its U.S. operations or risk a total ban. Microsoft's bid for TikTok didn't work out, but Oracle, ByteDance, and the Treasury Department all agreed to a deal for Oracle's U.S. takeover, two people familiar with the arrangement said.
After Oracle submitted its initial offer, Treasury Secretary Steven Mnuchin reportedly revised the deal's terms and sent it to ByteDance and Oracle on Wednesday night. The revisions had to do with the national security concerns surrounding TikTok's sale, people familiar with the deal tell Bloomberg. Both ByteDance and Oracle accepted the revisions. ByteDance would like to retain majority ownership of TikTok in a potential deal with Oracle, but Oracle will have to take operational control of the app to meet the U.S.'s requirements.
Microsoft had originally seemed to be the most likely buyer for TikTok. But ByteDance ended up rejecting its offer, while Oracle — whose CEO held a fundraiser for Trump earlier this year — ended up on top.