For a couple of weeks, Microsoft has been known as the potential buyer for TikTok. With about a month left before the September 15 deadline, it has been reported that Oracle has also joined the race as a credible alternative to Microsoft.
Oracle Corp, the Redwood City, California based software company is working with a group of investors to strike a deal with TikTok. These investors namely, General Atlantic and Sequoia Capital already have a stake in TikTok’s Chinese owner, Bytedance. Oracle has expressed interest to buy the app’s operations in the US, Canada, Australia, and New Zealand.
As of now, TikTok and Oracle have declined to comment.
President Trump’s nod of approval for potential TikTok bidder, Oracle
As per Bloomberg’s reports, Oracle’s net worth is about $166 billion in cash or near-equivalents and this could assist in sealing the deal with TikTok. President Trump has also given the company a stamp of approval and stated that Oracle is a great company and it is capable of handling the short-video app’s operations.
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Twitter has also reported being in preliminary talks with TikTok for acquisition but the drawback seems to be the company’s financial limitations. Currently, Microsoft Corp still seems to be forerunner with a market capitalization of about $1.6 trillion.
ByteDance receives executive order to sell or spin-off its US operations within 90 days
These intense negotiations are underway after President Trump issued an executive order last week. As per the order, the Chinese company has been given 90 days to sell or spin-off its US operations. The order mentions that the Trump-led administration has enough evidence to believe that ByteDance might take action that could be a threat to the national security of the United States.
TikTok has suggested taking legal action against the executive order. If it wins a stay long enough until after the US elections, the whole situation could be different. Presidential candidate Joe Biden has not made any definitive statement about TikTok’s future. Although, the staff from the Biden campaign have been instructed to delete TikTok from devices for security concerns.
Bottom Line
Given the various alternatives, it still difficult to predict what happens next, and which company will be successful in taking ownership of this video-sharing app. Right now, the clock is ticking.