Oracle wins TikTok acquisition talks
According to rumors; Oracle was the winner of the negotiations to buy TikTok. In case Oracle acquires TikTok, the infrastructure is expected to strengthen and the usage rate will increase by 10%.
Last month, we told you that Walmart and Microsoft joined forces to buy TikTok. Bidding against Oracle, Microsoft was expected, with the power of Walmart, to conclude the acquisition negotiations that had been going on from the beginning of Augtos in a positive way. However, according to rumors; Contrary to expectations, Oracle won the negotiations to buy TikTok.
A TikTok spokesperson said he would not comment on the rumors or speculation, while Oracle remains silent on the issue. According to rumors; Known for its proximity to Trump, Oracle will be positioned as TikTok’s “reliable technology partner” in the USA. At this point, let’s say that the purchase agreement cannot be structured as a direct sale.
By the way, it is worth noting that Microsoft’s statement on Sunday confirms the rumors. Microsoft said in a statement that TikTok’s bid to purchase US operations was rejected by the app’s parent company, ByteDance. The statement also included the following statements:
“We were confident that our offering would be good for TikTok users while protecting national security interests. We look forward to seeing how the service evolves in these key areas.
Why does Oracle want to buy TikTok?
It should be noted that silicon valley giants such as Google and Twitter are also interested in TikTok in the purchase race outside of Microsoft. However, Oracle seriously needs TikTok to expand its market share in social networking and marketing.
Let us remind you that the company has an important presence in the field of marketing automation and cloud infrastructures in the field of database. However, defining the company only as a database supplier would be belittling their work. Because Oracle has a huge area of operation that turns data into revenue. At this point, it is worth mentioning that Oracle collaborated with Zoom at the beginning of the pandemic. It is possible to say that the company will proceed with a similar structure in TikTok.
What will Oracle’s acquisition of TikTok change in practice?
With Oracle’s acquisition of TikTok, we can say that TikTok will have a strong infrastructure. This will also reflect on the company’s usage rates. Constellation Research analyst Holger Mueller states that if Microsoft buys TikTok, the usage rate will increase between 2 percent and 5 percent. However, according to Mueller, Oracle could raise that figure to 10 percent.
While the Oracle acquisition has not been officially confirmed for now, President Trump’s deadline for the acquisitions to complete is about to expire. In fact, Trump recently announced in an interview that he will not extend the date set for September 15. Therefore, it will be clear who recently bought TikTok.
In the meantime, let us state that the Chinese government is uncomfortable with the purchasing processes in the USA. This weekend, Beijing reported that Washington preferred to close TikTok in the US instead of following the sales order. From Beijing’s point of view, this acquisition will make both ByteDance and China appear weak to Washington’s pressure.
The content of the acquisition is likely to change, with trade sanctions imposed by the Chinese government two weeks ago restricting technology exports. As part of the acquisition, proprietary algorithms developed by the Beijing office of TikTok’s parent company, ByteDance, are not provided. This forces the company that acquired TikTok’s US operations to rewrite the codes that turned the app into a global social network star.
Microsoft Loses – Oracle Wins
Any agreement should still be reviewed by the Foreign Investment Committee in the United States known as CFIUS, a US government group headed by the Treasury Secretary that examines mergers for national security reasons. The president can approve or reject a transaction proposed by the panel, but Trump has expressed support for Oracle as a “great company” that can handle the acquisition.
“Let us know today that TikTok will not sell US operations to Microsoft,” Microsoft said in a statement on Sunday.
Microsoft added that “we are confident that our offer will be good for TikTok users and that it protects national security interests.” The company said it will “make significant changes to ensure the service meets the highest standards for security, privacy, online security and combating disinformation.”
Saying that it has 100 million US users and approximately 700 million users worldwide, TikTok is known for its fun, nonsense videos of dancing, lip syncing, jokes and jokes. It recently hosted more political content, such as comedian Sarah Cooper, who drew up Trump’s often disjointed statements in public and attracted a large audience.