Chinese short video app, TikTok has been at the center of controversy lately. The company currently has a possible ban in the US and it remains with one option. TikTok’s parent company, ByteDance, has to sell TikTok’s American arm to a US company rather than a ban. While it is in talks with Microsoft, there are other major potential U.S. buyers. According to US President Donald Trump, ByteDance has until February 15 to sell TikTok. One of the prominent but now public potential buyers is Oracle, an American multinational computer technology corporation.
While there are other big potential buyers like Twitter, it turns out that Microsoft and Oracle are the most serial competitors. In this article, we look at the capabilities of both companies and who are likely to take the day. No doubt, TikTok is a huge company that will cost between $ 20 billion and $ 30 billion. However, taking over TikTok will have a lot of money to cash out if and only if it handles it properly.
This afternoon, ByteDance issued a statement on the executive order of the US government. The company will go to court over the U.S. potential ban. This week, Oracle joined the fight to acquire the American company TikTok, the non-Chinese version of Douyin.
Oracle has held preliminary negotiations with its parent company TikTok, Bytedance. The company is now seriously considering the acquisition of TikTok’s companies in the US, Canadian, Australian and New Zealand. So far, Microsoft has been dealing with enormous rivals in the process of getting TikTok. However, here are the top 5 reasons why Oracle is not a match for Microsoft.
1. Oracle has never had resources for consumer grades
Since its inception, Oracle has specialized in vertical enterprise applications. This includes products to users, from technology to services, from brand to influence, from business models to channels to operations … Oracle has almost no consumer-level resources.
The operation of Douyin (TikTok) is completely different from the operation of Oracle. With a broadly different business model, we can hardly see how Oracle intends to keep TikTok alive. We can not help but think that this is a pseudo-acquisition. Maybe it will ground TikTok after the purchase. However, will it throw its $ 30 billion in the trash? So many questions that require answers.
2. Oracle does not have a single product image
The first thing that the owners of several joint ventures think of is the database. For Oracle, it does not have a uniform consumer-level product image.
It’s not like users just call “Windows” and think of Microsoft. Oracle has always been for the B-market, or for companies and institutions. It really has little if any contact with the consumers. After all, a company that does not connect to the C-market has nothing to do with internet operations.
Back then Microsoft had 20 years of experience at the consumer level. In the PC era, with Windows operating system, smart audio, and future cloud computing have an enormous base for consumer users.
From a user level and business positioning perspective, Microsoft is more suited to purchasing TikTok.
3. Oracle has no contact with the social internet market
Whether it’s FaceBook, Twitter or Microsoft, they’re all more “down-to-earth”. The news that Oracle is throwing his hat into the TikTok acquisition is strange. To an average Internet user, the name “Oracle” is strange. In fact, many users have never heard of it. For such a company, it will have a lot to contend with. A company that has not tried to make an impact in the internet sector, even if the purchase is ultimately successful, there is no guarantee that TikTok will run smoothly.
4. Oracle has never purchased an Internet company
Another very important point is the history of Oracle’s acquisition of Internet companies. There has been a constant development in the internet industry over the past 26 years. In these years there have been several acquisitions.
Oracle has taken over many software companies, hardware workstations, and server giants over the past 20 years. However, this company has never gotten an internet related business. But why? Because it is not self-aware? So, where does the interest come from now after so many years of silence?
5. Oracle’s Cloud operation is not on par
One of the major issues facing TikTok is its server location and its cloud management platform. Oracle’s industrial position in cloud computing and cloud services at the second or third level. The basic business experience relative to Microsoft’s relationship is not on par. They are worlds apart in the consumer market and the entire internet market. With such a shallow ‘qualification’ in the sector, the chances of a successful acquisition are very slim.
The US government is stopping the purchase
The US government is not in favor of any particular company taking over TikTok. Its attitude is quite clear.
- TikTok must close the sale to a U.S. company on or before September 15th
- The emphasis is that the company that buys TikTok must be completely American
- The TikTok server after purchase will be in the US (probably)
- The US government should be adequately compensated by the purchase of TikTok
Conclusion:
Oracle is not so much competition, the best thing it will do is increase the asking price of TikTok. The more American companies show interest, the higher asking price of TikTok. However, the US government will not care about the price of TikTok. The higher the price of TikTok, the higher the compensation given to the US government.
ByteDance can go to court
In all, we must not forget that there are some legal proceedings that will begin in the coming weeks. ByteDance casts doubt on the US Government’s executive order. The company says the allegations thereon are unproven. It also considers that there is no substantial basis for the concerns that this application “may” be used for false propaganda activities. According to ByteDance, the dubious behavior of data collection is a dubious prevalent practice in thousands of mobile apps around the world.
ByteDance believes that this US executive order will undermine the confidence of global companies. The order provided a dangerous precedent that undermines the freedom of expression and open markets. TikTok reiterates that it is even ready to sell its US company to an American company. However, it is of the opinion that it does not receive fair treatment and that it may have to take place before the American court.
