09/17/2020

SoFi is committed to fighting racism, standing in solidarity with all of our communities, providing space for open dialogue,
as well as taking action as informed allies. We are donating $1 million to organizations that empower people of color and their allies.

student on his phone

Oracle’s TikTok Takeover



Oracle Beats Microsoft in Bidding War

Oracle Corp. (ORCL) will partner with TikTok to take over the app’s US operations. TikTok has been caught in the crossfire as tensions rise between Beijing and Washington. Last month, President Trump announced he would ban TikTok in the US due to national security concerns unless a domestic company stepped in to take over its US business.

Several companies were interested in the high-profile deal, including Microsoft (MSFT), which many saw as the frontrunner in the race to take over TikTok. However, Oracle won the bidding war.

Up Next: The CFIUS Review

Yesterday, Treasury Secretary Steven Mnuchin said Oracle sent a bid proposal for TikTok’s operations to his office over the weekend. The Committee on Foreign Investment in the US, led by the Treasury, is reviewing the agreement this week. They will be looking to see if it complies with the government’s requirements about data security.

The details of the agreement have not yet been disclosed, but it is expected that the deal will be more like a partnership than an acquisition because there will not be a substantial exchange of assets. Some existing investors in Bytedance, TikTok’s parent company, will get stakes in the new venture as part of the deal. These investors include US firms Sequoia Capital and General Atlantic.

Mr. Mnuchin also said the agreement involves plans to headquarter TikTok in the US, which will create 20,000 new jobs. The deadline set by the White House for the deal to close is September 20.

Oracle’s Plans

Through partnering with TikTok, Oracle hopes to ramp up its cloud-computing business, which lags behind Amazon (AMZN) and Microsoft. Oracle mainly works with business clients, so running a consumer-facing social media platform will be a significant change for the company.

TikTok has about 100 million monthly users in the US—a huge jump up from 11 million users in 2018. Worldwide, the app has about 689 million users. These users, as well as investors and lawmakers, will be eager to see how the next five days of negotiations unfold, and what choices Oracle will make when the deal is closed.


Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS091501


All your finances.
All in one app.

App Store rating

Download on the App Store Get it on Google Play

ABOUT SoFi SoFi helps people achieve financial independence to realize their ambitions. Our products for borrowing, saving, spending, investing, and protecting give our more than one million members fast access to tools to get their money right. SoFi membership comes with the key essentials for getting ahead, including career advisors and connection to a thriving community of like-minded, ambitious people. For more information, visit SoFi.com. Want an easy and convenient way to manage your financial life? Get the SoFi app. For iOS and Android.


TLS 1.2 Encrypted
Equal Housing Lender