The fight over TikTok in the U.S. is more than just a business deal; it is part of the big clash between the U.S. and China over tech, safety, and power. ByteDance, the China-based owner of TikTok, must sell its U.S. arm by April 5 or face a ban. At the heart of this is Oracle Corp. (ORCL), the U.S. tech firm that plays a key role in TikTok’s fate.
Oracle has worked with TikTok for years. It stores data for the app and keeps U.S. user info out of China’s reach. This plan, referred to as “Project Texas,” aimed to calm fears over data safety, but it did not win full trust. Now, as pressure builds, Oracle may step in again to help shape what happens next.
Bloomberg reports that Oracle could still act as a safety guard for TikTok even if ByteDance is forced to sell. Some call this new setup “Project Texas 2.0.” There is talk that Oracle may even take a small stake in the U.S. branch of TikTok, but it is not in a spot to buy the whole thing. The firm has significant debt and little know-how in running a social app. But its role shows how tech control sits at the core of the U.S.-China feud.
This Is Bigger Than TikTok
The clash over TikTok is just one part of a bigger fight. The U.S. does not trust apps owned by China. It fears they may give Beijing data or use it to spread views that help China. China, in turn, sees this forced sale as just one more way the U.S. is trying to block its rise in tech.
A major talking point concerns the TikTok algorithm. This is the secret sauce in a recipe that keeps users hooked. China has clarified that it will not let ByteDance sell this key tool. That means any new U.S. owner, Oracle-backed or not, must build a new system from scratch. Even Meta (META) has failed to match TikTok’s grip on users.
What Comes Next?
The clock is ticking, and TikTok may be banned if it does not close a deal by April 5. Trump and others have hinted at giving more time, but Congress may not wait. Again, this is bigger than just a regulatory issue or a business deal. It’s about national security, personal information, and spreading ideas and ideology.
Is ORCL a Buy?
On Wall Street, Oracle is considered a Moderate Buy. The average price target for ORCL stock is $179.36, suggesting a 20.01% upside potential.
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