Oracle is interested in taking over TikTok from Chinese-based tech group Bytedance, a new report from the Financial Times disclosed. The move comes after United States President Donald Trump threatened to ban the wildly popular short-video sharing app.
Oracle is said to be discussing with Bytedance the details of a potential buyout – a move that could see the software giant highjack Microsoft's attempt to own a portion of TikTok, whose operations in the U.S. are estimated to be worth over $20 billion.
The company has made an initial approach to other ByteDance investors, including growth equity group General Atlantic and venture capital group Sequoia Capital, to join it in a proposal for TikTok's business in New Zealand, Australia, Canada and the U.S., according to sources who requested anonymity.
The Redwood City, Calif.-based company – the second-biggest software maker in the world – did not respond to requests for comment. A spokesperson for ByteDance said they don't comment on rumors or speculation.
Last week, Trump issued a directive to force ByteDance to divest the firm's app. He gave the Chinese group 90 days to dispose of or spin-off its operations in the U.S, saying there's solid proof that ByteDance might act and threaten U.S. national security.
The Trump administration is said to be paranoid about the privacy of Americans on using the Chinese app and the methods the Chinese government might use to extract information from U.S.-based users.
But Oracle is a rather surprising suitor given the company's background. Larry Ellison was the brains behind Oracle's formation in 1977 as a Central Intelligence Agency-funded program, and its operating system was an integral element of modern surveillance technology.
Microsoft looks to be the most likely contender for a TikTok acquisition, but Oracle's bid to gatecrash the proceedings could boost the company's data businesses if things go according to plan.
