Oracle has beat out rival bidder Microsoft to take over the U.S. operations of Tiktok, the popular video app.
That's according to sources familiar with the matter, who said Sunday (September 13) the deal won't be a sale - but rather a restructuring - in the hopes of avoiding a ban in the U.S. while also appeasing the government of China.
Tiktok has found itself in the middle of a political standoff between Beijing and Washington.
Bytedance, TikTok's Chinese parent company, had been in talks to divest the app's U.S. business to Oracle or Microsoft after President Donald Trump threatened last month to shutdown the app in the U.S. if it wasn't sold off.
Oracle's Chairman Larry Ellison is one of the president's few supporters in the tech world.
Negotiations were upended late last month, when China changed its rules for exporting tech.
That gave it a say over the transfer of TikTok's algorithm to a foreign buyer.
Reuters reported last week that the Chinese government would rather shut TikTok down in the United States than let it be part of a forced sale.
Under the deal, Oracle would be ByteDance's technology partner and would handle TikTok's U.S. user data.
The sources added that Oracle is also negotiating a stake in TikTok's U.S. assets, but they did not disclose how much of those assets ByteDance and its investors would keep.
ByteDance will now need both the U.S. and Chinese governments to approve the proposed deal.
It remains unclear whether Trump, who wanted a U.S. technology company to own most of TikTok in the United States, will give it the green light.
Microsoft said earlier on Sunday ByteDance had informed them that they would not be getting the TikTok deal.
ByteDance and Oracle did not immediately respond to requests for comment, and The White House declined to comment.