Home PC News Only 2 companies should buy TikTok, and Oracle isn’t one of them

Only 2 companies should buy TikTok, and Oracle isn’t one of them

As if Microsoft’s curiosity in shopping for TikTok wasn’t unusual sufficient, reports this week recommended enterprise-focused database and cloud large Oracle was planning to enter the fray. A broad view of the state of affairs, nevertheless, reveals solely two logical candidates: Facebook and Google.

Microsoft emerged as a shock TikTok suitor earlier this month after President Trump issued an govt order giving ByteDance — TikTok’s mother or father firm — 45 days to promote its U.S. enterprise. The President later prolonged the deadline to 90 days. Trump claimed that TikTok might hoover up information on U.S. customers and share it with it the federal government in China, the place ByteDance relies. He threatened to ban TikTok until Microsoft or one other “very American” firm stepped in to purchase it.

This is why Oracle — whose cofounder and chair Larry Ellison has ties to Trump — may very well be making ready to bid on TikTok’s U.S. enterprise, which has been valued at someplace between $10 billion and $30 billion.

But why?

As with a possible Microsoft bid, you could find causes Oracle would need to purchase TikTok’s operations — however provided that you squint exhausting sufficient. Some observers have recommended TikTok would function a showcase consumer to bolster Oracle’s cloud service aspirations. There’s little doubt it might — however is taking over all of the drama and controversy that comes with operating a social community actually value it?

Although Oracle’s recent financial results might have been higher, the corporate is doing high-quality — its shares hit an all-time high only a yr in the past, they usually stay within reach of that pinnacle as we speak.

Intrinsically social

Any firm that isn’t an intrinsically “social” platform ought to keep away from TikTok just like the plague. Just yesterday, news emerged that TikTok has eliminated greater than 380,000 movies within the U.S. for violating its hate speech coverage and banned greater than 1,300 accounts for posting hateful content material this yr.

Does Oracle — or Microsoft, for that matter — actually need to cope with this sort of headache? Bill Gates called Microsoft’s potential TikTok deal a “poisoned chalice,” and that will be the case for any firm trying to purchase TikTok — with a few notable exceptions.

Facebook is maybe the obvious potential purchaser, because the social media large recently launched a second attempt to clone TikTok by way of its Instagram Reels product. Back in 2016, Facebook considered buying Musical.ly, a precursor to TikTok that ByteDance purchased a yr later.

Google is one other logical candidate, as there are clear synergies between TikTok and Google-owned YouTube, given their shared give attention to video. In reality, many “influencers” heartily embrace TikTok, YouTube, and Instagram.

Plus, Facebook and Google are already accustomed to battling controversies over user-generated content material — from bullying to trolls, propaganda, conspiracy theories, and misinformation.

Twitter has been mentioned as another possible buyer for TikTok, and whereas such a tie-up would make sense on many ranges, Twitter doesn’t have the identical monetary assets as Facebook or Google mother or father Alphabet.

When you look throughout the checklist of potential consumers, solely two names make any actual sense — and Oracle definitely isn’t one in all them.

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