President Donald Trump declared that Oracle is “a great company” when asked if it would be a good buyer for TikTok. ORCL stock is up.
Stocks of cloud engineering company Oracle Corporation (NYSE: ORCL) are up by 1.79% on Wednesday following news that the company’s interest in TikTok has support from President Donald Trump. While still in the 90-day ultimatum President Trump issued for the acquisition of TikTok in order to prevent their ban from the country, new interests including that from Oracle (ORCL) have started making the rounds.
The President declared that Oracle (ORCL) is “a great company” when asked if it would be a good buyer for TikTok. In an event in Yuma, Arizona, President Trump said:
“Well, I think Oracle is a great company, and I think its owner is a tremendous guy. He’s a tremendous person. I think that Oracle would be certainly somebody that could handle it. Yeah. We gave them until September 15.”
Despite the President directly tagging Oracle (ORCL) with TikTok, neither of the companies has commented on a potential deal brewing. Meanwhile, Oracle (ORCL) stock has shown a slight gain on Wednesday following this potential acquisition deal. The stock rose by 1.79% at $56.28 per share to draw closer to its 52-week highest close of $57.84.
Oracle vs Microsoft: Whom Does TikTok Hat Fit More?
Of the United States’ top tech companies on Wall Street, only Microsoft Corporation (NASDAQ: MSFT) has shown a confirmed interest in the acquisition of TikTok’s parent company ByteDance operations in North American, Australia, and New Zealand.
With TikTok’s global business valuation set at about $50 billion, the Microsoft deal is projected to cost as low as $10 billion and as high as $30 billion. With plans to restructure the company, Microsoft will take about a year to transfer TikTok’s 15 million code lines to the U.S. should the deal pull through.
The economic and business relevance of TikTok’s acquisition to the two tech companies comes to fore. While Microsoft looks to leverage TikTok’s large consumer base to create another social media presence outside of its LinkedIn network, the acquisition of TikTok by Oracle will mark the company’s foray into the social media world.
In helping to make meaning of Oracle’s stake in the pursuant of TikTok, Abishur Prakash, a geopolitical futurist at a strategy consulting firm called Center for Innovating the Future said:
“By putting TikTok’s data on Oracle servers, Oracle may be able to build in-roads into new industries. In the post-COVID world, every business is trying to reinvent themselves, and within geopolitics of tech, there isn’t just risks, but also opportunities. Oracle may have its own ideas as to how it could use TikTok that it hasn’t revealed to the market yet.”
As Coinspeaker reported earlier, the TikTok’s high customer data is presumably a major point of interest for the cloud engineering firm.
Leveraging All Possible Advantages
In the race for the acquisition of the social media sensation, all points can add to the competing parties’ advantage. Oracle’s Co-Founder billionaire Larry Ellison is an avid supporter of President Donald Trump’s re-election.
Oracle co-founder Larry Ellison threw a campaign fundraising event for Trump earlier this year and has expressed his support for the president.
While the time is fast ticking, and whatever the either Microsoft, Oracle or any other interesting business in the TikTok deal will emerge, the President’s interest is clear; take over TikTok and compensate the United States Treasury for initiating the deal.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.