The Battle for TikTok
Oracle has entered the competition to buy TikTok after U.S. president Donald Trump threatened to shut down the app’s service in the U.S. if it is not taken over by an American company.
Microsoft was exploring options to buy the social media platform’s global operations, but ByteDance, TikTok’s owner, made clear it was only looking to sell the app’s business in the U.S., Canada, Australia and New Zealand. Microsoft said it was particularly interested in buying TikTok in Europe and India. The app is currently banned in India, but would likely return if owned by an American company. ByteDance has stated that it is only looking to sell its operations in the U.S., Canada, Australia and New Zealand.
Microsoft had made the only credible offer until Oracle entered the picture. With over $43 billion in cash or near equivalents, Oracle is one of the few U.S. companies with the ability to pull off such a big move. Analysts estimated TikTok’s U.S. business could be valued anywhere from $20 billion to $50 billion depending on how aspects of the business are split up.
Oracle is working with a group of U.S. investors that already own a stake in ByteDance to reach a deal. The emergence of Oracle could make this an interesting bidding war between two of the world’s biggest tech companies.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.