over 3 years ago • 2 mins
Oracle – the world’s second-biggest software maker – has reportedly joined the chase to buy TikTok’s operations in the US, Canada, Australia, and New Zealand 🕺
Oracle – which focuses on selling cloud computing software to corporate customers – doesn’t seem like it has the background for a consumer-facing social media app. In fact, analysts reckon it’ll have to build an entirely new arm just to accommodate the platform 🦾 But that might not matter: Oracle’s reportedly spoken to venture capital firms about partnering up in hopes that their expertise might plug the gaps in its knowledge.
Oracle’s rival-apparent seems like a more natural fit: Microsoft already owns professional social networking platform LinkedIn and search engine Bing (yep, Bing’s still around), and has experience with both their advertising businesses 🤔 Social media firm Twitter has expressed interest too, though there are some concerns it can’t actually pay for the deal…
As of May, Oracle had around $43 billion worth of cash lying around, so it could in theory buy TikTok – valued by analysts at between $20-50 billion – on its own 💵 Microsoft has plenty in the bank too – over $136 billion, in fact – but it might be worried that suitors like Oracle could push up the price it has to pay. Even if Microsoft eventually wins out, then, it’ll be under more pressure to turn TikTok into an advertising powerhouse to justify its likely-higher cost.
A major concern the US government has with TikTok is that users’ data is exported to China – something a US buyer would aim to undo 🇺🇸 But if you’re already worried about where your data is ending up, it’s worth keeping track of which tech giant is running your favorite platforms. That way, you can always get it wiped altogether – though that’s admittedly easier to do in Europe than elsewhere in the world.
Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.