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In what has become just another chapter in the strangest timeline, Oracle has pulled ahead in the race to acquire TikTok, according to The Wrap offering more than $20 billion in cash and stocks.
We reported last week that Oracle was in talks with ByteDance, TikTok’s owners, and was looking to purchase the US, Canada, Australia and New Zealand operations of the company in partnership with existing US-based investors such as General Atlantic and Sequoia Capital.
According to The Wrap, Oracle was offering $10 billion in cash, $10 billion in Oracle stock and 50% of annual TikTok profit for 2 years, to be paid to ByteDance. Globally TikTok reported revenue of $17 billion in 2019, has more than 800 million active users worldwide, and is believed to be worth around $100 billion.
The deal may close soon, with TikTok’s CEO Kevin Mayer, resigning on Wednesday saying: “As we expect to reach a resolution very soon, it is with a heavy heart that I wanted to let you all know that I have decided to leave the company.”
The Wrap reports some disagreement between ByteDance’s management and its investors over the deal, however, with investors General Atlantic and Sequoia Capital favouring a quick resolution, with ByteDance CEO Zhang Yiming looking to pursue a legal battle against the Trump administration.
Currently, ByteDance has until the 12th November to close the deal or face complete closure of its US operations.