Oracle may be on the verge of playing a major role in TikTok’s future in the U.S., but the situation is far from settled. A recent wave of reporting suggests Oracle is part of a consortium preparing to launch a new U.S.-only version of TikTok—potentially branded as “TikTok M2”—in response to looming government pressure. The deadline for ByteDance to divest from TikTok’s American operations has been extended to September 5, 2025. After that, the app could be banned unless a deal is finalized.
Chinese outlets initially reported that ByteDance had already accepted a proposal led by Oracle. However, ByteDance quickly denied any finalized agreement. Oracle’s rumored plan involves joining a group of investors. This group would reduce ByteDance’s ownership stake below 20%. Meanwhile, it ensures U.S. control over the data and algorithm that power the app.
This kind of arrangement might not satisfy critics in Washington. They argue that any lingering ByteDance involvement could still allow the Chinese government indirect influence over what Americans see online. It might also affect what they say. That concern is what fueled the bipartisan law demanding divestiture or ban in the first place.
The Biden administration appears to be open to Oracle playing a central role in this effort. This is possible provided there are enough legal safeguards in place. There must also be enough technical safeguards. But political tension remains high. Many lawmakers aren’t convinced that Oracle’s involvement would truly wall off American data from Beijing’s reach. Some suspect it would be little more than a cosmetic fix—U.S. branding slapped over foreign-owned tech.
If the sale or restructuring goes through, the new version of TikTok could launch as early as September. The old version of the app would likely remain operational until early 2026. It may be taken offline entirely if it doesn’t comply with the divest-or-ban law. As of now, TikTok users can still post and browse as usual, but the clock is ticking.
In short: Oracle’s role is growing, the government’s deadline is approaching, and TikTok’s American future is hanging in the balance.