[responsivevoice_button rate=”1″ pitch=”1.2″ volume=”0.8″ voice=”US English Female” buttontext=”Story in Audio”]
Oracle leaps 10% after reportedly winning partnership bid for TikTok’s US operations
- Oracle jumped as much as 10% in early Monday trading on reports that the firm won bidding for a partnership with TikTok’s US business.
- The news comes after the White House threatened to ban the ByteDance-owned app on data security concerns if it didn’t sell its US arm to an American business.
- Microsoft was Oracle’s biggest threat in reaching a deal, but the firm said Sunday it won’t be joining ByteDance in a partnership.
- The deal is unlikely to involve a sale, The Wall Street Journal reported, though Oracle is expected to take a stake in TikTok.
- Watch Oracle trade live here.
Oracle surged as much as 10% in early Monday trading after multiple news outlets reported the company won the bidding to partner with TikTok’s US arm.
The news follows an intense race among major tech companies to take the social media giant under their wings. Microsoft, which planned a joint bid with Walmart, presented the biggest threat to Oracle’s effort.
Oracle will be deemed TikTok’s “trusted tech partner” in the US, The Wall Street Journal reported on Sunday. The deal is unlikely to involve a sale, though Oracle is expected to take a stake in the ByteDance-owned company.
Read more: ‘The psychology is even more dangerous than 20 years ago’: A Wall Street investment chief says stock valuations are giving him dot-com bubble flashbacks – and warns of a major meltdown in the next year
Still, the White House and the Committee on Foreign Investment in the US need to approve the deal before it goes through, according to The Journal. The forced sale of TikTok’s US business sparked international controversy and reignited political tensions between the US and China. Sources told The Journal they believe the deal satisfies the US government’s worries around data security.
President Donald Trump has repeatedly threatened to shut down TikTok’s US operations if the company isn’t sold to an American firm. The White House set a deadline of September 20 for a sale plan to be announced, with a shutdown deadline looming on September 29. An announced deal would need to be completed by November 12.
Microsoft said in a Sunday blog post it received word from ByteDance that the Chinese tech giant wouldn’t pursue a deal.
“We are confident our proposal would have been good for TikTok’s users, while protecting national security interests,” Microsoft said. “To do this, we would have made significant changes to ensure the service met the highest standards for security, privacy, online safety, and combatting disinformation, and we made these principles clear in our August statement.”
Walmart remains interested in a joint deal. The company said in a Sunday statement that it continues to hold conversations with ByteDance and other interested parties.
Oracle closed at $57 on Friday, up roughly 8% year-to-date.
Now read more markets coverage from Markets Insider and Business Insider:
A Wall Street chief strategist explains how the shockingly quick onset of pandemic fear may have set up both the economy and stock market for a surprisingly strong 2021
Bank of America boosts 3rd-quarter GDP forecast and lowers 4th-quarter outlook on mix of pros and cons
‘The worst crash in our lifetime’: One market expert says stocks are screaming towards a Great Depression-like setup in early 2021 – and warns an 80% to 90% plunge isn’t out of the question