- The US government received a proposal from Oracle and TikTok early this week that's designed to allow the video-sharing platform to remain in the US.
- However, the deal — which has seemed set for approval — is facing roadblocks, Bloomberg reported.
- US officials are weighing whether Oracle's bid to become TikTok's "trusted technology provider" does enough to address national security concerns that China's ByteDance can access American users' data.
- Visit Business Insider's homepage for more stories.
US officials are reportedly raising last-minute national security concerns over whether Oracle's US partnership with TikTok would do enough to adequately keep American users' data safe from China.
Bloomberg reported that this debate has delayed the US government from signing off on the proposed Oracle deal, in which the cloud company would become TikTok's "trusted technology provider" in the US. Despite the bid's design to assuage national security concerns, officials are "wary" about whether the company's US restructuring would adequately stave off China's influence, Bloomberg said.
The TikTok-Oracle partnership, which took shape this week, is a far cry from Trump's earlier demands that TikTok's parent company sell off its US operations entirely. As part of the proposed deal, ByteDance would break off TikTok's global business as its own US entity, in which Oracle would become a minority shareholder. It also appears that Oracle would take over the management and processing of TikTok data belonging to users either in the US or globally.
TikTok and Oracle did not immediately respond to Business Insider's requests for comment.
The Committee on Foreign Investment in the US — which reviews transactions between foreign and American companies and declared last month that ByteDance had to divest its US operations — was set to review the proposed deal on Tuesday. Bloomberg reported that Treasury Secretary Steven Mnuchin had reviewed the proposed deal.
CFIUS is expected to meet again Wednesday to discuss the Oracle-TikTok bid, according to Bloomberg.
If CFIUS approves the deal, Trump will have to sign off on the details. The Chinese government will also have to agree to the terms before the deal is official.
Though it initially appeared as if the Oracle deal would not face any substantial challenges, some US lawmakers wrote a letter Tuesday urging CFIUS and Trump to reject the "completely unacceptable" deal.
If the deal is rejected, it could send negotiations back to square one. The US government has set a deadline of September 20 for ByteDance to finalize a deal, with the threat of a ban still looming over the situation.