United States president Donald Trump has put his weight behind the U.S. enterprise software giant Oracle for purchasing the US business of he popular video sharing app TikTok.
When asked if Oracle would be a good buyer for TikTok, TRumnp said that the Americna company is “a great company”.
There were reports at the end of last week that the Californian tech firm, co-founded by billionaire Larry Ellison, was interested in purchasing North America, Australia and New Zealand businesses of TikTok and was in negotiations with the Chinese parent company of the app ByteDance.
“Well, I think Oracle is a great company, and I think its owner is a tremendous guy. He’s a tremendous person. I think that Oracle would be certainly somebody that could handle it. Yeah. We gave them until September 15,” Trump said while speaking at an event in Yuma, Arizona.
The amount of money that Oracle would be wiling to shell out for TikTok is unclear even though there were reports that the company was valued at $50 billion by some of ByteDance’s investors.
Under the corporate structure of TikTok, its operations and businesses in New Zealand, Canada, and Australia are controlled from the United States and hence these territories are being included in any potential deal.
American venture capital firms Sequoia Capital and General Atlantic are also part of Oracle’s bid for TikTok. The two venture capital firms are also investors in ByteDance.
unless the app can be sold to an American organization within 90 days, the US government will ban TikTok, Trump had said last week.
“There is credible evidence that leads me to believe that ByteDance … might take action that threatens to impair the national security of the United States,” Trump said in an executive order. ByteDance denies the allegations.
Abishur Prakash, a geopolitical futurist at a strategy consulting firm called Center for Innovating the Future talks about why Oracle could be interested in purchasing TikTok even though the video sharing app might not seem like the most natural fit for it.
“By putting TikTok’s data on Oracle servers, Oracle may be able to build in-roads into new industries,” Prakash said.
“In the post-Covid world, every business is trying to reinvent themselves,” Prakash added. “And, within geopolitics of tech, there isn’t just risks, but also opportunities. Oracle may have its own ideas as to how it could use TikTok that it hasn’t revealed to the market yet.”
Apart from Oracle, another US tch giant Microsoft is also in the fray for a possible purchase of TikTok.
“I guess Microsoft wants it and so does Oracle, and probably so do other people, but they have to also make sure the United States is well compensated because we’re the ones making it possible. Very simple: We’re the ones making it possible,” Trump said when asked which company he’d rather see take ownership.
“Our Treasury has to be very well compensated,” Trump added.
(Adapted from CNBC.com)