Enterprise software maker Oracle, the world’s second-largest software firm by revenue and market capitalization after Microsoft, has reportedly enter the race to acquire the Chinese-owned TikTok short video app following US President Donald Trump’s divestment order.
The tech company co-founded by Larry Ellison had held preliminary talks with TikTok’s Chinese owner, ByteDance, and was seriously considering purchasing the app’s operations in the US, Canada, Australia and New Zealand. Oracle was working with a group of US investors that already own a stake in ByteDance, including General Atlantic and Sequoia Capital.
Microsoft, which has been the lead contender for TikTok, said earlier this month that it had held discussions with ByteDance, which operates TikTok. Trump last Friday said he would shut down TikTok unless it’s US operations are acquired by a domestic company by September 15.
It’s interesting that Oracle chief Larry Ellison, who is 76 years old, in February held a fundraiser for Trump at his estate in Coachella Valley, California. But as the article states, it’s unclear whether the “White House is more supportive of Oracle’s approach than that of Microsoft.”
The viral video streaming app has been rising in popularity tremendously in the past year or so even though it has been available on the US App Store since 2017.
Oracle rose 2.85% in premarket trading to $55.53 on the news.