Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money

66% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

  • Earnings

Oracle Beats Out Microsoft In Race For TikTok Deal

Oracle Beats Out Microsoft In Race For TikTok Deal

Just three weeks ago, I gave a truncated timeline of the twists and turns of this TikTok deal. Well, you can tack on a CEO walk-out and Walmart becoming a potential suitor to that list since then. The saga looks like it may have finally come to a close with the partnership between Oracle (NYSE: ORCL) and TikTok. The Larry Ellison-run company pipped Microsoft (NASDAQ: MSFT) to the post to pen a deal with the fastest growing app in the U.S. 

This article was originally published on MyWallSt — Investing Is for Everyone. We Show You How to Succeed.

However, they won’t be popping champagne in Redwood Shores HQ just yet as the deal still has to be approved by The White House and Committee of Foreign Investment. Oracle and TikTok parent company ByteDance must prove that the deal is enough to sate the current administration’s concerns over the security of the data collected on the app. Sources say that the agreement is closer to a partnership than an acquisition, which may not be exactly what Trump had in mind when he mandated that the Chinese company sell its U.S. operations by September 20th. This fact, coupled with the geopolitical tempest that has surrounded TikTok over the past two months, and the heightened tensions recently between China and the U.S. make me wonder if we’re not completely out of the woods yet. 


Why does Oracle want TikTok?

It’s reported that Oracle’s pursuit of TikTok was motivated primarily by kickstarting the company’s cloud business. Facilitating the technology and data of 100 million monthly active users across America would go some way to elevating Oracle’s operations to the levels of the tech giants of Amazon, Microsoft, and Google. 

There is also the fact that deals like this don’t come along very often. When the fastest growing social media platform goes on the market in such a manner, it’s going to garner interest from just about anyone that can afford it. This explains why we’ve seen such a conveyor belt of suitors queuing up for what seems like a bargain. 

Whatever the motivations and circumstances that drove this deal were, the reality of it is that Oracle is partnering with a business that is a million miles from its day-to-day operations. While there is a huge upside, there remains a slew of potential pitfalls as well, not least of which the fickle nature of the majority of its user base, teens. 

The announcement of the deal sent Oracle stock up 4.32% on Monday's close.


MyWallSt makes it easy for you to pick winning stocks. Start your free trial with us today— it's the best investment you'll ever make.

Disclaimer Past performance is not a reliable indicator of future results.

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

CMC Markets does not endorse or offer opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein.

*Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.

Continue reading for FREE

  • Includes free newsletter updates, unsubscribe anytime. Privacy policy

Free ebook

Tricks of the trade: 7 interviews with the world’s top traders

Get it now

Related articles