Oracle joins bid to acquire TikTok's US operations: Report

WION Web Team
San Francisco, United States Published: Aug 19, 2020, 07:52 AM(IST)

Oracle and TikTok Photograph:( Reuters )

Story highlights

US President Donald Trump said that Oracle Corp is a good company and could take over popular Chinese-owned social media app TikTok in the United States, after he issued an order mandating its sale in 90 days.

Software giant Oracle is weighing a bid to join Microsoft in the race to acquire part of TikTok, Bloomberg reported on Tuesday, citing people familiar with the matter.

It has preliminarily approached companies including Sequoia Capital to join a bid for the app's operations in the US, Canada, Australia and New Zealand, the report said.

The move would represent a strategic departure for Oracle, which caters mostly to corporate customers and generates the bulk of its sales from cloud offerings and software licensing.

US President Donald Trump said that Oracle Corp is a good company and could take over popular Chinese-owned social media app TikTok in the United States, after he issued an order mandating its sale in 90 days.

Oracle's co-founder and Chairman Larry Ellison is one of the few top technology executive to openly support Trump, who has ordered ByteDance to divest TikTok amid concerns over the safety of the personal data of US consumers.

Oracle is working with some of ByteDance's investors, including General Atlantic and Sequoia Capital, on making an offer for the TikTok assets that would challenge a rival bid from Microsoft Corp, the sources said, speaking on condition of anonymity.

Also read: Microsoft to bid goodbye to Internet Explorer and legacy edge after 25 years

TikTok has stepped up its defense against US accusations that the popular video app is a national security threat, denouncing what it called "rumors and misinformation" about its links to the Chinese government.

As tensions soar between the world's two biggest economies, Trump has claimed TikTok could be used by China to track the locations of federal employees, build dossiers on people for blackmail, and conduct corporate espionage.

Also read: Setting the record straight: TikTok denies Trump's accusations

The US leader early this month also ordered a ban on the messaging app WeChat, which is used extensively in China.

On Friday, Trump signed a separate executive order for ByteDance to sell its interest in Musical.ly, the app it bought and merged with TikTok in 2017, citing national security.

TikTok said the US action "risks undermining global businesses' trust in the United States' commitment to the rule of law, which has served as a magnet for investment and spurred decades of American economic growth."

TikTok also repeated its intention to "pursue all remedies available to us in order to ensure that the rule of law is not discarded."

China meanwhile on Monday slammed Washington for using "digital gunboat diplomacy" in the TikTok case.

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