President (Donald Trump) said: The American enterprise software giant Oracle is a great company, when asked about it being a good buyer of TikTok.
His endorsement of Oracle, co-founded by billionaire Larry Ellison, follows reports that the California tech company is interested in buying TikTok businesses in North America, Australia and New Zealand from Chinese parent company ByteDance.
Speaking at an event in Arizona, Trump said: I think Oracle is a great company, and I think its owner is a great guy, he’s a great guy, and I think Oracle will definitely be able to handle the deal, and we gave them until September 15th.
It is unclear how much Oracle is willing to pay for TikTok, but some ByteDance investors They appreciate The global TikTok business is valued at $ 50 billion.
The way TikTok is regulated means that subsidiaries in New Zealand, Canada and Australia are reporting to the United States, which is why they were included in the deal talks.
Oracle’s offer to buy TikTok also includes US venture capital firms Sequoia Capital and General Atlantic, both of which are investors in ByteDance.
Trump said last week that the US government would ban TikTok unless the app could be sold to an American company within 90 days.
Trump made clear through an executive order that there is credible evidence that leads him to believe that BiteDance may take action that threatens to harm the national security of the United States.
TikTok may not seem like a more natural fit for Oracle, but Abishur Prakash, a geopolitical future expert at a strategic consulting firm called the Future Innovation Center, understands why the company is so interested.
By putting TikTok data on Oracle servers, Prakash said, the US company might be able to build internal roads in new industries.
“Every company is trying to rediscover itself in the post-Coronavirus world, and there are not only risks in the geopolitics of technology, but opportunities as well,” Prakash added.
Oracle is competing with Microsoft, which has emerged as a front-runner in the race for its fast-growing social media app.
When asked which company he prefers to own the app, Trump said: I think Microsoft and Oracle want that, but they have to make sure the United States gets a good compensation because we are the ones who make it possible.
“Our treasury needs to be compensated very well,” Trump added. Earlier this year, Ellison ran a fundraising campaign for Trump and expressed his support for the president.