Trump backs Oracle’s potential TikTok takeover

TikTok has until mid-September to find a suitable US-based purchaser

Trump in the background of the TikTok splash screen

UPDATE: President Donald Trump has announced his support for Oracle’s reported plans to purchase TikTok’s US operations.

Speaking during an official visit to Yuma, Arizona, the president described Oracle as “a great company”, adding that it “would certainly be somebody that could handle" TikTok.

“I think its owner is a tremendous guy, a tremendous person,” said Trump, referring to Oracle chairman Larry Ellison, an avid supporter of the Trump administration who has held fundraising events for the president in the past.

The comments came just hours after it was revealed that Oracle was reportedly interested in acquiring the popular video-sharing platform. Oracle’s motivations behind the alleged bid are unclear as the company not expressed much interest in social media platforms in the past. TikTok’s significantly young user base seems also greatly at odds with Oracle’s usual demographic.

According to Fanbytes CEO and co-founder Timothy Armoo, some of the “obvious wins” for Oracle could be the access to immense amounts of TikTok users’ data, as well as “cloud solutions”.

Another possible scenario could be Oracle’s attempt to block Microsoft’s plans to acquire the app, based on comments made by Ellison to the San Francisco Chronicle in 2014: “I still think it’s possible to beat Microsoft, believe it or not, for us to be a more important company than Microsoft”.

US Treasury Secretary Steven Mnuchin declined to comment about the reports, which were first published in The Financial Times, but told CNBC that any deal to acquire TikTok would protect the data of the app’s 100 million US users.

“We’re looking at all the different issues and I can assure that any deal that gets approved will make sure that American data is protected and that this becomes a US-based company,” said Mnuchin.

18/08/2020: Oracle is reportedly interested in acquiring TikTok’s US, Canadian, Australian and New Zealand operations. 

According to The Financial Times, Oracle has held preliminary talks with TikTok’s parent company ByteDance and is working with at least two US investors which already own a stake in the company - General Atlantic and Sequoia Capital.

Both Oracle and TikTok declined to comment on the reports, so the details and motivations for the reported bid are unclear.

A bid from Oracle would come as a direct challenge towards Microsoft’s plans to acquire the popular video-sharing app, which is facing a potential ban in the US over alleged links to the Chinese government.

TikTok has until mid-September to find a suitable US-based purchaser in order to avoid being banned in the US. Microsoft has been seen as the main contender since the beginning of the month when it confirmed that it was in discussions with ByteDance.

Microsoft vowed that the “new structure would build on the experience TikTok users currently love, while adding world-class security, privacy, and digital safety protections”.

Following the announcement, Twitter also threw its hat in the ring, reportedly promising to provide TikTok with more agency and less regulatory scrutiny than Microsoft.

However, in contrast to Microsoft, it's questionable Twitter would be able to afford to buy the app, as its market capitalisation is estimated to be worth around $29 billion (£22 billion), while ByteDance has been known to previously value TikTok at $50 billion (approximately £38 billion).

Oracle seems like a more realistic contender in the TikTok bidding race, with a market capitalisation of $168 billion (around £127 billion).

Meanwhile, Donald Trump, who has previously accused TikTok of being a risk to personal data and security, took his stance further by creating an official account on a US-based video-sharing platform Triller. The app aims to become a contender and even alternative to TikTok, which has around 100 million users in the US. 

Featured Resources

The ultimate law enforcement agency guide to going mobile

Best practices for implementing a mobile device program

Free download

The business value of Red Hat OpenShift

Platform cost savings, ROI, and the challenges and opportunities of Red Hat OpenShift

Free download

Managing security and risk across the IT supply chain: A practical approach

Best practices for IT supply chain security

Free download

Digital remote monitoring and dispatch services’ impact on edge computing and data centres

Seven trends redefining remote monitoring and field service dispatch service requirements

Free download

Recommended

Oracle to launch 14 new cloud regions over the next year
Cloud

Oracle to launch 14 new cloud regions over the next year

12 Oct 2021
Windows 11 has problems with Oracle VirtualBox
Microsoft Windows

Windows 11 has problems with Oracle VirtualBox

5 Oct 2021
Supreme Court denies Oracle appeal over JEDI contract
Cloud

Supreme Court denies Oracle appeal over JEDI contract

4 Oct 2021
Oracle Fusion Marketing automates lead generation
artificial intelligence (AI)

Oracle Fusion Marketing automates lead generation

20 Sep 2021

Most Popular

Best Linux distros 2021
operating systems

Best Linux distros 2021

11 Oct 2021
HPE wins networking contract with Birmingham 2022 Commonwealth Games
Network & Internet

HPE wins networking contract with Birmingham 2022 Commonwealth Games

15 Oct 2021
What is cyber warfare?
Security

What is cyber warfare?

15 Oct 2021