Saad Ullah
Oracle has expressed interest in buying TikTok to launch a Chinese social media platform in America. That creates a standoff between Oracle and Microsoft. Technology and business giant, Larry Ellison, is currently conducting preliminary negotiations with TikTok's parent company, ByteDance, and is serious about buying its business in the United States, Canada, Australia and New Zealand.
Against this background, shares of Oracle at the premarket on Tuesday rose in price by 3,32%. The stock is at $55.78 a few hours before the main trading session.
Last Friday, President Trump ordered ByteDance to divest the American subsidiary for 90 days. The FT states that a billionaire and Oracle's co-founder, Ellison, is among the few American entrepreneurs who backed up Trump publicly, but it is not certain whether Oracle will be TikTok's preferred sponsor of the White House.
It will be legally and technologically difficult to buy a TikTok share. So far, Microsoft has been considered to be a leader in trying to find an American buyer. The FT points out that Twitter has already expressed early interest in the Wall Street Journal news, that Twitter has shown "significant concern" about its financial capabilities. Although TikTok's popularity was not officially recognized by any award, it became the most successful startup in the world in 2018.
Let us recall that Twitter recently joined the race for TikTok. The media giant also decided to buy a part of the Chinese video service and compete against Microsoft for a share in the company.
However, at that time, the shares of both companies fell by an average of 2% after the announcement of potential negotiations.
Saad Ullah
