Oracle in talks to buy TikTok

By: Miguel A. Rodriguez

09:45, 14 September 2020

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The competition intensifies over TikTok

Buying TikTok has been the hot topic of the last couple of weeks. Since President Trump announced the ban of the app and revised his decision shortly after Microsoft said it is in talks to purchase it from ByteDance, other companies set their eyes on TikTok. 

At the beginning of last week, the social media giant, Twitter, spread the word that it has begun negotiating with ByteDance's representatives over TikTok. 

Now, another buyer is in sight, the American technology corporation, Oracle. Financial Times reported that the company is in preliminary talks with ByteDance to buy TikTok's operations in New Zealand, Australia, the US, and Canada. Currently, Oracle is working with various US investors that already have a stake in ByteDance, such as General Atlantic and Sequoia Capital. 

If the deal closes, it could be beneficial to Oracle, as the company doesn't have a social-media type of business segment. The best-case scenario would be for Oracle to use the customer data collected by TikTok to attract more people to use its products. 

Lately, Oracle struggled to find new areas that can bring profit, as the segment of cloud computing segment is dominated by Amazon Web Services, while Microsoft Azure and Google Cloud are completing the triad. 

During today's pre-market session, Oracle stock price gained almost 4%.

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Sources: reuters.com, cnbc.com


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