Oracle also wants to buy tiktok, but the purpose is hard to say

Founder Larry Ellison is a supporter of trump, which may help Oracle win tiktok. However, Oracle has no desire for social media operation, no experience, and no strategic synergy demands. The acquisition purpose based on business strategy has become a fan of the fate of tiktok. The Financial Times recently quoted people familiar with the matter as saying that Oracle, an established U.S. it company, has held preliminary negotiations with byte hop, the parent company of tiktok, and is seriously considering purchasing the app’s business in the United States, Canada, Australia and New Zealand. Oracle is working with U.S. investors holding byte jump shares, including transatlantic and Sequoia Capital. On August 18 local time, U.S. President trump confirmed the news when he attended the event in Arizona. This is the third company after Microsoft and Twitter to disclose its intention to acquire tiktok, and Oracle’s admission makes the outcome even more unpredictable. < / P > < p > not long ago, trump issued an administrative order requiring the delivery of tiktok’s US business sale within 90 days of byte skipping. The previous time limit was 45 days. After the extension, tiktok got more space to move around, but the time was still tight. A number of scholars and lawyers interviewed by Caijing said that even if Oracle, twitter and other companies joined the bidding, byte skipping was still in a passive position in the negotiation process. The Ministry of foreign affairs of China has repeatedly responded to the tiktok issue. Foreign Ministry spokesman Zhao Lijian said on the 17th that tiktok’s U.S. business, including the president, all middle and senior management of the company have employed Americans. Tiktok server in the United States, data centers in the United States and Singapore, the operation team has all realized localization, the company employs 1500 American employees, and promises to create 10000 jobs. Tiktok also disclosed the audit policy and algorithm source code. “It can be said that tiktok has met almost all the requirements put forward by the US side.” According to the U.S. Capitol Hill, tiktok U.S. employees are ready to file a lawsuit against tiktok’s trading ban, and their lawyers said they will file a lawsuit in federal court later this week, accusing Trump’s actions as administrative ultra vires, which will damage employees’ constitutional rights, including the right to remuneration. < / P > < p > “the acquisition must not be the most desired outcome of byte jump, even if we can get back 10 billion dollars of purchase money.” Tang Dajie, director of Saiyi Enterprise Research Institute and visiting researcher of finance, taxation and law research center of Wuhan University, told Caijing that transferring tiktok to the United States is like creating a strong opponent for itself. The other party has the algorithm, operation ability and gene of byte hopping in the field of short video. In the future, it will form a competitive relationship with byte skipping in the global situation. < / P > < p > at the event on August 18, when the reporter asked, “is Oracle a good buyer in the acquisition of tiktok?” “Oracle is a great company, and the boss is a great person. Oracle bone inscriptions can certainly handle it. ” The implication is that trump is optimistic about Oracle’s acquisition of tiktok. Jiang Zhaokang, an international trade and supply chain management lawyer and partner of GSC Potomac, has had business contacts with Oracle. He told Caijing that the outstanding advantage of Oracle lies in government relations. “Oracle founder Larry Ellison is a strong supporter of trump, which is very rare in it.” “I don’t think he’s a devil. I support him very much. I hope he does well.” In February, Larry Ellison also publicly raised money for Trump’s campaign, which led to petitions from some Oracle employees. As early as 2018, Larry Ellison said in an interview with Fox News, “I think one of our big competitors is China. If we let China’s economy surpass us, train more engineers, and let China’s science and technology companies beat our technology companies, soon, our military science and technology will also lag behind, as will the economy in science and technology. ” This argument is the same as Trump’s attitude towards China. In addition, safra Catz, Oracle’s chief executive, was a member of the Executive Committee of Trump’s transition team in 2016. In the past, the U.S. government usually did not intervene in the issue of merger and acquisition. However, the government led acquisition of tiktok is inseparable from the relationship between government and business. “The U.S. government may create some reasons to favor oracle. Trump is not principled and is not sure what this administration will do. ” Jiang Zhaokang commented. Wang Peng, a scholar at the Management Research Institute of Beijing Academy of Social Sciences, told Caijing that at a time when the public thought that the acquisition of Microsoft was basically a foregone conclusion, trump set a 90 day deadline for tiktok, and then supported Oracle to participate in the bidding. Considering that Oracle has always been regarded as an important enterprise for the US government to monitor network data, Trump’s support for Oracle’s acquisition of tiktok may involve political interests and demands. In addition, Oracle has a close relationship with early tiktok investors such as general Atlantic and Sequoia Capital, which does not exclude the possibility of acquiring tiktok through investors. Previously, investors led by Pan Atlantic investment group and Sequoia Capital offered $50 billion for tiktok, much higher than the $10 billion to $30 billion offered by Microsoft, and higher than the valuation of snap33 billion, a similar short video company. Yu Shilin, manager of Huasheng securities research department, told Caijing that a higher purchase price could help bidders win tiktok, and Oracle has a cooperative relationship with the two investment institutions. < p > < p > Microsoft is not an Internet company, but it has always had the ambition and efforts to enter the mobile Internet. “Microsoft had a strong desire to enter the mobile Internet in the era of Steve Ballmer.” Tang Dajie said. In the field of C-end consumer Internet products, Microsoft has successively acquired mojan studios, a developer of minecraft, and beam, a live game platform, and renamed it mixer (closed). It even offered Facebook an olive branch for $24 billion, but Zuckerberg refused. < p > < p > specifically in the field of social media, Microsoft also has Skype, a video conferencing software, and LinkedIn, a workplace social platform. “From the perspective of format, Microsoft has the most advantage. Its own social media business can be combined with tiktok.” Jiang Zhaokang said. < p > < p > Yu told Caijing that Microsoft attaches great importance to tiktok, which can attract young people who are far away from traditional media and help them enter the first echelon of social media field and directly challenge Facebook. At the same time, Microsoft can also obtain massive user data to better understand consumer behavior, which is conducive to the promotion of consumer products, such as Xbox. < / P > < p > “taking tiktok into the pocket can increase Microsoft’s share of the U.S. digital advertising market.” Debra aho Williamson, chief analyst of emarketer, told Caijing that Microsoft’s share of the U.S. digital advertising market this year is only 1.5%, slightly higher than snapchat, but far behind Facebook’s 42.0% and Google’s 10.4%. < / P > < p > but she also reminded that this advertising value is only potential, and tiktok is still in its infancy in the development of its advertising business, so there is no guarantee that it will attract a large amount of advertising revenue. In order to build a lasting advertising business, tiktok also needs to develop simple self-service tools to enable marketers to buy advertisements in bulk with automatic purchase tools. Microsoft may be able to help with technology. According to previous foreign media reports, tiktok’s overall business value reached $50 billion, and byte jitter thought that the valuation was low. Microsoft’s offer ranges from $10 billion to $30 billion. The offer, which is far below the valuation level, has caused dissatisfaction among many outsiders. In a vote of 250 employees within Microsoft, 63% of participants objected to the deal, and some commented that “this deal is immoral in almost any way.” < p > < p > however, although Microsoft has a long-term attempt to enter the mobile Internet, on the whole, it is not very successful. Therefore, even if we win tiktok, whether Microsoft has the ability to operate and manage tiktok is still in doubt. “Microsoft is likely to screw up tiktok.” A cross-border trade practitioner expressed his concerns to Caijing. From Nokia to mixer, Microsoft’s performance in the field of mobile Internet is mediocre, and its traditional corporate culture is not necessarily suitable for tiktok’s younger positioning. < / P > < p > in terms of product form, twitter and tiktok have the highest affinity. Short video social networking has always been an area twitter wants to enter. As early as 2012, twitter acquired the short video app vine, which was once popular, but then went from bad to worse. Finally, it was announced offline in 2016. < / P > < p > with the experience of operating short video platform, the blockbuster products can also form synergy effect with tiktok. The acquisition advantage of twitter seems to be very prominent. However, Tang Dajie also pointed out that this must be the last situation that byte skipping is the last to see. It is possible for twitter and tiktok to form a powerful short video social networking company. The bigger problem for Twitter is its own cash reserves. In terms of market value, revenue or net profit, twitter can’t compare with the other two competitors. Its cash and cash equivalents, short-term investment and other capital reserves are only $8.5 billion, far lower than tiktok’s valuation. That means Twitter is likely to need to bring in other investors to close the deal. < / P > < p > if Microsoft and twitter still have a track record of liking tiktok, then Oracle’s entry is even more confusing. Oracle, the world’s second-largest software maker, has previously focused on the b-end market, rarely on the consumer Internet or social media. According to the fourth quarter financial report of Oracle in fiscal year 2020, Oracle realized revenue of US $10.44 billion, down 6% from US $11.136 billion in the same period of last year, and net profit was $3.1 billion, down 16% year-on-year. Except that the revenue of cloud services and authorization support business increased by 1% to 6.845 billion US dollars, the revenue of cloud authorization and on-site authorization business, hardware and service business decreased to varying degrees. Except for business development factors, the current business development is not ideal, which may make Oracle eager to seek the next growth point and join the potential strong social media market. < p > < p > Wang Peng judged that Oracle should pay attention to tiktok’s user data when participating in the competition. Oracle is good at storing and underlying data warehouse, which is also the biggest connection between Oracle and tiktok. Yu also said that Oracle can well support tiktok’s demand for cloud data storage and save costs, while tiktok’s user data can also be used to improve marketing products, especially to provide consumer relevance that is useful to advertisers