Oracle Corp.’s bid for TikTok falls short of resolving concerns of Trump administration officials that the Chinese-owned video-sharing app poses a risk to U.S. national security, according to people familiar with the matter, Bloomberg News reports.
President Donald Trump has the authority to sign off on a deal, but continuing concerns from national security officials could sway his decision. The agreement remains on the table, with discussions continuing between administration officials and the companies, said the people, who asked not to be named because the talks are confidential.
Addressing those remaining issues could pave the way for U.S. approval, the people said.
The officials, including Secretary of State Michael Pompeo, are concerned that after a potential transaction, TikTok’s Chinese owner, ByteDance Ltd., could still have access to user data from its nearly 100 million users in America, said the people. The officials remain wary about the proposed new ownership structure and how much influence that would give China over the company.