Any deal for part of TikTok, which is owned by China's ByteDance, must be approved both by Chinese authorities and by the White House. Trump issued an executive order in August banning transactions with TikTok unless it is sold to a U.S buyer.
At an Aug. 3 press conference, Trump added that the app would be banned "around" Sept. 15 unless ByteDance sells its U.S.-based assets by that time.
According to CNBC, however, the deal struck between Oracle and TikTok allows ByteDance to retain operational and financial control of its U.S. assets. The deal would make Oracle a "trusted technology partner" that would be responsible for storing and securing data in the U.S.
ByteDance sees the proposal as a satisfactory compromise that accounts for the U.S. government's concerns with data security of U.S. users, sources told CNBC.
But it's unclear whether the White House will approve of the deal. Trump has also suggested repeatedly that the U.S. Treasury should get "a lot of money" out of any deal.
Terms for Oracle's proposal haven't been disclosed, but it is backed up by private equity firms Sequoia Capital and General Atlantic.
"We are confident our proposal would have been good for TikTok's users, while protecting national security interests...To do this, we would have made significant changes to ensure the service met the highest standards for security, privacy, online safety, and combating disinformation, and we made these principles clear in our August statement," the company wrote.
Walmart said on Sunday that it "continues to have an interest in a TikTok investment and continues discussions with ByteDance leadership and other interested parties."