Appreciated as a ‘good company’ by U.S. President Donald Trump, the software giant Oracle weighs a budding bid for the well-liked short-video app’s services in North America, Australia, and New Zealand, say sources.
The tech giant is winning headlines in preliminary discussions with ByteDance, TikTok’s Chinese owner for the speculations of buying some of the app’s business.
The move would embody a deliberate exit for Oracle, which caters mostly to commercial customers and produces the bulk of its revenue from cloud contributions and software licensing.
The co-founder and Chairman of Oracle, Larry Ellison, is one of the top tech experts to support President Donald Trump explicitly. The latter has directed ByteDance to despoil TikTok amid concerns about the security of the personal data of U.S. users.
Oracle is associated with some of the famous ByteDance’s investors, comprising Sequoia Capital and General Atlantic, on creating an offer for the TikTok assets that would defy a rival bid from Microsoft Corp, say sources.
Microsoft Corp. is regarded as the front-runner in the pursuit to obtain TikTok’s U.S. assets and is the only corporation to confirm discussions with ByteDance openly. U.S. President Donald Trump informed reporters on Tuesday that the software giant Oracle also showed interest in
TikTok and could take part in the purchase of the service. Priced at approximately $166 billion, Oracle detained about $43 billion in cash or near-equivalents by the end of May, making it one of the prominent corporates that could potentially pay for the disdainful price tag for TikTok. Analysts and bankers have projected the value of TikTok’s U.S. business standing at between $20 billion and $50 billion, an expansive range that replicates the intricacy involved in untying TikTok’s American and global companies.
Oracle shares closed up 2.2% as per the sources on Tuesday, offering the corporate a market capitalization of over $169 billion.
Twitter Inc has also contacted ByteDance to show interest in obtaining the U.S. operations of TikTok. However, its chances are less due to its smaller size and the antitrust inspection for such a combination, sources informed.
The White House has come up with its efforts to cleanse what it deems unreliable Chinese apps from U.S. digital networks. Beyond TikTok, Trump has also directed an order that would eliminate transactions with Tencent Holdings Ltd’s WeChat.
Other bidders specifically interested in the TikTok assets comprise Twitter Inc. The social media brand is among prominent U.S. tech firms that have also discovered possible bids though it can’t be ascertained how far those talks have reached, according to multiple sources.
TikTok accounts for more than 100 million users in the U.S. When this brand separates its technology from ByteDance, it will require discovering new spots to store the massive amount of data generated by these potential users. The app could be an anchor tenant for Oracle’s Cloud Infrastructure unit that crowds client information but has challenged to keep up with competitors Amazon.com Inc. and Microsoft. Oracle accounts for over seven data-center regions for corporate events across North America and Australia.