Oracle (NYSE:ORCL) news concerning rumors of a deal to acquire TikTok has ORCL stock up on Tuesday.
According to the recent news reports, Oracle is looking to challenge Microsoft’s (NASDAQ:MSFT) attempt to acquire TikTok. The company is reportedly working with private equity firms General Atlantic and Sequoia Capital to acquire parts of TikTok.
General Atlantic and Sequoia Capital both already have stakes in TikTok and could help Oracle with its acquisition effort. The goal of the talks is to acquire TikTok’s U.S., Canadian, Australian, and New Zealand assets.
The race to acquire TikTok comes as the U.S. government prepares to ban the app in the country. The reason behind this is security concerns raised by President Doland Trump and his administration. ByteDance, the Chinese owner of TikTok, has until November to divest its assets or see the app banned in the U.S., reports CNBC.
Oracle and Microsoft aren’t the only companies considering a TikTok acquisition. Twitter (NYSE:TWTR) is also said to be interested in picking up the social media app. However, news reports claim Oracle and Microsoft are the furthest along in acquisition talks.
The push against TikTok is part of a larger effort by the U.S. government to ban several Chinese apps. Another major target of the effort is WeChat. This is another social media app from China. Its owner is internet giant Tencent (OTCMKTS:TCEHY), Reuters notes.
ORCL stock was up 2% as of Tuesday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.