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American software company Oracleis MicrosoftBeyond (MS), Chinese video application service Tik TokHe has become one of the leading candidates to take over the American business. Oracle accounts for 60% of the global enterprise database market.
The New York Times and other foreign media reported on the 13th (local time), “Bytedance, the parent company of TikTok, chose Oracle as a ‘technology partner’ and rejected Microsoft’s takeover offer.” A dramatic change occurred two days before the sale deadline (15) proposed by the president of the United States, Donald Trump.
Initially, Microsoft, which had a large amount of funds in association with Wal-Mart, was mentioned as one of the main buyers, but Microsoft announced that it could not acquire “Bite Dance has been informed that it will not sell TikTok to Microsoft.” It is known that SoftBank, Twitter and Google, who had cast their release votes prior to the TikTok acquisition, were also excluded from the pool of candidates, with virtually only Oracle remaining at the negotiating table.
However, it is not yet clear how Oracle will take over the TikTok business in the United States. On the 29th of last month, the Chinese government designated TikTok’s artificial intelligence (AI) technology as an export control item. If you want to sell TikTok to an American company, you need to get permission from the Chinese government.
The IT (information technology) industry predicts that “it is likely to be a ‘partial sale’, except for the core technology of TikTok.” This means that Oracle is referred to as a “technology partner” rather than a “priority negotiator.”
Hong Kong’s South China Morning Post reported: “Bitedance has notified the company it wants to acquire that it cannot ignore the details of artificial intelligence technology.” Even if Oracle acquires TikTok, it is very likely that TikTok only has data management, such as access to user information in the United States.
Oracle is expected to be difficult to acquire TikTok because it has less cash than Microsoft and does not have experience dealing with consumers. Oracle’s cash assets are $ 43 billion (51 trillion won), which is just a third of Microsoft’s holdings of $ 136 billion (162 trillion won).
There is speculation in the information technology industry that “Oracle founder Larry Ellison’s close relationship with President Trump would have worked to an advantage in this negotiation.” It is easy to get approval from the US government for sale.
Additionally, some analysts say that private equity managers such as Sequoia Capital and General Atlantic, who have partnered with Oracle, are the major shareholders owning about 40% of Byte Dance, which influenced the choice of Byte Dance.
