Oracle (NYSE:ORCL) is moving forward with plans to buy Chinese social media app TikTok.
Here’s what investors need to know about the Oracle deal to acquire TikTok.
- News of the deal spread on Monday after it was mentioned by U.S. Department of the Treasury Secretary Steven Mnuchin.
- Oracle also released a statement after this confirming that it plans to acquire the company.
- Financial details of the deal, such as how much Oracle will spend to acquire TikTok, are still unknown.
- However, we do know that the deal still needs government approval before it can reach a close.
- Mnuchin confirmed that the government will look at the deal over the next few days to confirm that Oracle is taking the right steps.
- Oracle stands to benefit from the deal in a couple of ways.
- That includes spreading its brand to a younger audience and gaining loads of ad data from users.
- The sale of TikTok comes after President Trump revealed plans to ban the app if it wasn’t moved over from a Chinese company.
- With the current plans underway, it looks like TikTok will be sticking around despite the attempt to ban it.
- The fact that Oracle us buying TikTok means that other companies looking to acquire it failed.
- That includes Microsoft (NASDAQ:MSFT) and Twitter (NYSE:TWTR), both of which were said to be interested in acquiring TikTok.
ORCL stock was up 5.1% as of Monday afternoon.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.