Oracle Takes On Microsoft In TikTok ANZ Bid
Enterprise technology vendor, Oracle, is reportedly in talks to outbid Microsoft for the acquisition of video sharing app, TikTok, as the companies wrestle to snare a deal before the Trump administration’s mid-September ban.
According to The Financial Times, Oracle is in preliminary talks with Chinese patent, ByteDance, to purchase TikTok’s operations in the US, Canada, Australia and New Zealand.
Oracle is reportedly coordinating with a group of US investors – including Sequoia Capital – to close the deal.
The news comes after Microsoft confirmed it was engaging in discussions to complete a deal over TikTok, focused on the same regions as Oracle’s bid.
Talk of the deal has been swamped with commentator speculation around TikTok’s worth, ranging from US$20 billion – US$50 billion. Some analysts predict the acquisition could be the largest by Microsoft’s in the last decade.
Several market commentators assert the purchase of TikTok by Oracle is an unusual market-fit, with Microsoft’s LinkedIn rendering it closer alligned than Oracle’s CMS and enterprise systems.
TikTok has continued to be shrouded with controversy over its data privacy practices, with the Trump government mandating its purchase by a US company over cybersecurity risks to the Chinese government.
The company was found to have allegedly violated Android policy in data collection for over 18 months.
The interjection of Oracle into the TikTok bid is deemed to further complicate what may be a lengthy, and complex, acquisition process for Microsoft.