TikTok’s U.S. future remains uncertain amid ongoing talks ahead of a potential ban or sale in the country. According to Chinese media reports, ByteDance has firmly denied reports suggesting a potential sale of its U.S. operations to a consortium led by Oracle Corporation (ORCL). Previous media reports stated that a group led by Oracle was likely to buy most of TikTok’s U.S. business.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
For context, ByteDance is a Chinese internet company and the parent of TikTok. It is currently overseeing the potential sale of TikTok’s U.S. operations. The company is under pressure to sell the app to address U.S. data security concerns or face a possible ban in the country.
TikTok Takeover Battle Heats Up
ByteDance has until September 17 to complete the sale of TikTok’s U.S. operations, which will require approval from both U.S. and Chinese authorities. The deadline stems from ongoing national security concerns, as lawmakers in Washington continue to scrutinize the China-owned app over data privacy and cybersecurity risks.
To avoid an outright ban, U.S. President Donald Trump signed a series of executive orders earlier this year, delaying TikTok’s ban, which was originally set to take effect in January. Most recently, Trump said discussions with China regarding a possible TikTok deal would likely begin this week, according to Reuters. He added, “We pretty much have a deal.” Last week, Trump mentioned that a group of wealthy investors had expressed serious interest in acquiring the platform.
TikTok Launches Backup Plan
Meanwhile, recent reports also suggested that TikTok is working on a new version of its U.S. app as it faces the ongoing threat of a possible ban or forced sale. It plans to launch a new app in U.S. app stores by September 5, which users will eventually need to download.
TikTok, with around 170 million U.S. users, aims to stay in the market amid ongoing talks.
Is Oracle a Good Stock to Buy?
A potential TikTok deal could strengthen Oracle’s foothold in social media and AI-driven analytics. Notably, the two companies already have a strong partnership, with Oracle providing cloud services to ByteDance.
Overall, Wall Street has a Moderate Buy consensus rating on ORCL stock, based on 21 Buys and 11 Holds assigned in the last three months. The average Oracle stock price target of $220.11 implies over 5% downside potential from current levels.
