TWTR, ORCL, MSFT: Who’s Going To Buy TikTok?

ost somewhat in the aftermath of the pandemic is that China and the U.S. are still in the midst of a trade war. It’s unlikely that there will be any sort of resolution until after the election, and even then, China/U.S. relations have a long way to go when it comes to trade issues. However, there is the occasional reminder that friction remains between the two economic powerhouses.

In this case, the topic of dispute concerns a widely popular app called TikTok. The app – a video streaming product popular with the younger crowd – is owned by Chinese company ByteDance. Because of how ubiquitous TikTok has become, there is a vast amount of data collected by the app; this data could at any point be used by the Chinese government. The U.S. considers this a threat to national security.

Due to the security concerns, the U.S. has given ByteDance a 90-day window to sell the app to a U.S. company, or TikTok will be banned. Of course, several companies have lined up to make this purchase, as it would be a goldmine for advertisers (see Instagram, for example).

At the moment, we know of three companies that could realistically purchase TikTok. The first one announced was Microsoft (MSFT). The $1.6 trillion company could certainly outbid anyone for the app, and has plenty of experience with social platforms (through its Xbox platform).

Another company that has shown serious interest is Twitter (TWTR). Twitter is a best-of-breed social media company, which makes it a perfect fit for TikTok. However, it is also just a fraction of MSFT’s size, and may not be able to afford the price tag.

Finally, just this week database and enterprise software giant Oracle (ORCL) has entered the bidding race. Oracle doesn’t seem like a good fit for a social media platform, but it has plenty of cash to make the purchase. One thing ORCL does have going for it is experience with data security, which may boost the company’s credentials.

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Chee Hin Teh 3 months ago Member's comment

mant thanks sir