The clock is ticking for TikTok as U.S. President Trump engages in high-stakes talks with multiple parties to take over the Chinese video-sharing app. According to an NPR (National Public Radio) report, the Trump administration is working on a plan to secure TikTok’s future by bringing in Oracle (ORCL) and other investors to take control of its global operations.
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However, later on, Trump denied having discussions with Oracle’s Larry Ellison regarding a TikTok takeover. Trump also told reporters, “I have spoken to many people about TikTok, and there is great interest in the app.” Trump further stated that he expects to decide about the app’s future within the next 30 days.
This follows Trump’s decision to delay a temporary ban on the app, one of his first major actions after taking office. On January 20, he signed an executive order extending TikTok’s deadline by 75 days, allowing the app to decide whether to halt its U.S. operations or sell the platform. Following this order, TikTok services were restored in the U.S.
Is Oracle Taking Center Stage in TikTok Acquisition Talks?
NPR further reported that TikTok’s owner, ByteDance would keep a minority share, while Oracle would manage the app’s data and algorithm to address security concerns. Although negotiations are ongoing, the deal is expected to include substantial U.S. ownership for the app, while reducing its Chinese control. Nonetheless, ByteDance is expected to retain a stake and will not completely exit the venture.
Meanwhile, a source involved in the discussions, who spoke anonymously, explained that the goal is for Oracle to monitor and oversee TikTok’s operations. Notably, Oracle already plays a crucial role in TikTok’s operations by supplying much of the server infrastructure that supports the app.
The Battle for TikTok
Reports also indicate that Microsoft (MSFT) is among the other potential investors involved in the discussions. However, Microsoft’s exact role in the current negotiations is uncertain.
Interestingly, Trump responded to a reporter last week, stating that he is open to the possibility of Tesla’s (TSLA) Elon Musk or Ellison purchasing TikTok. Trump’s preference for Musk or Ellison makes sense, as both were among his strongest supporters during the presidential election.
Is Oracle Stock a Good Buy Now?
On TipRanks, ORCL stock has a Moderate Buy consensus rating based on 15 Buys, 11 Holds, and one Sell rating. Also, the average Oracle share price target of $192.88 implies a change of 5.05% from current levels.
Over the last 12 months, ORCL shares have gained over 60%.
