In a major surprise, TikTok has chosen Oracle to sell their US operations, and technology, instead of Microsoft.
This will mean that Oracle will now control and operation TikTok in the US, and chances are high that Oracle can be the chosen partner for their global operations as well. Although no confirmation or denial has come in.
But why Oracle, and not Microsoft?
What Oracle gains by acquiring TikTok?
Will TikTok relaunch in India now?
Keep reading to find out more!
Contents
TikTok Choses Oracle Over Microsoft!
After US President Donald Trump gave a deadline of September 20th to TikTok’s owners ByteDance to either sell their US operations or shutdown, TikTok management was under pressure.
Rumors were floating that Microsoft is a strong contender for acquiring TikTok’s US and global operations, but there was a twist which no one was expecting.
Microsoft has confirmed that their bid for TikTok has been rejected by ByteDance, and this leaves Oracle as the only bidder, and this means that Oracle will now own and control TikTok’s massive 100 million userbase in the US.
The deal is not final yet.
Committee on Foreign Investment in the United States, also known as CFIUS will now study the implications of Oracle-TikTok deal, and give the approval for the same.
But, why Oracle is so determined to buy TikTok?
3 Reasons Why Oracle Is Buying TikTok?
Access To Data & Information
US is a very strong market for TikTok, and there are more than 100 million or 10 crore users of the short video app in the US. Mainly teenagers.
By acquiring TikTok and their database, users, Oracle can have a wealth of information related to the American internet users, mainly teenagers, who are among the biggest online spenders globally.
Expansion Into New Industries
Oracle is world’s 2nd largest software company, and have made deep inroads into capturing the market of database software and technology, cloud engineered systems, and enterprise software products.
But now, like every major business conglomerate, Oracle too will try to diversify, and enter new markets, new segments.
With TikTok under their kitty, social media market seems like a good destination for Oracle. And the experience generated from this transaction will help them to diversify smartly. And boldly.
Control Of Global Operations
Overall, Tiktok has 700 million users, and one of the biggest market: India has banned it.
Now, once Oracle is able to acquire US operations of TikTok, they can have the foundation ready to takeover TikTok’s global operations as well, and further expand their reach and influence.
However, $50 billion worth TikTok has not opened all their cards, and it’s not sure whether global operations are also for sale or not.
Will TikTok Relaunch in India?
Once Oracle takes over US operations, then chances are bright that TikTok can be relaunched in India, if Oracle is able to take control of global operations as well.
For TikTok users in India, who are missing the action, Oracle taking over TikTok’s US operations is a good news, bringing in a new hope.
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