Jim Cramer drops blunt 3-word message on TikTok buyers
Whoever buys TikTok could get rich.
U.S. and Chinese officials said on Sept. 15 they’ve reached a framework deal to put TikTok under U.S. control.
The social media giant is currently owned by ByteDance, a private Chinese tech company. Due to fears that TikTok's exposure of U.S. user data to the Chinese government could allow spying, the U.S. government has been pushing Beijing to either sell TikTok to a U.S.-based entity or end its operation in the country.
U.S. Treasury Secretary Scott Bessent says the deal would address U.S. security concerns but keep "Chinese characteristics" of TikTok that Chinese negotiators care about.
"They are interested in Chinese characteristics of the app, which they think are soft power. We don't care about Chinese characteristics. We care about national security," Bessent told reporters after a meeting with Chinese negotiators in Madrid.
Since taking office in January, President Donald Trump has delayed the enforcement of the TikTok ban provision multiple times.
The latest deadline is now Sept. 17, but the president has suggested that he may extend the TikTok ban deadline again.
The framework agreement will be further discussed in a call scheduled on Sept. 19 between President Trump and Chinese President Xi Jinping.
Oracle already provides cloud services for ByteDance, including TikTok's U.S. operations.
Image source: Shutterstock/TheStreet
Investors eye TikTok’s possible buyers
Several companies have reportedly shown interest in acquiring TikTok, including AppLovin (APP) , Amazon (AMZN) , and Oracle (ORCL) , CNBC’s David Faber noted.
"The nature of the buyer is critical for investors," Morningstar analyst Malik Ahmed Khan wrote in a research note in June, Investor's Business Daily reported. The U.S. is TikTok’s largest market and a key driver of its advertising revenue.
"A strategic acquirer with existing advertising technology or e-commerce strengths (Amazon or AppLovin, for example) could intensify competition, turbocharging TikTok's U.S. growth and potentially muting upside for incumbents like Meta and YouTube," Khan wrote.
"Conversely, a financial buyer or one lacking deep ad-tech expertise may lead to a more significant digital ad wallet share shift toward these established players," he added.
Shares of Oracle rose 3.4% on Sept. 15, while AppLovin and Amazon both gained more than 1%.
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Oracle already provides cloud services for ByteDance, including TikTok's U.S. operations. The cloud infrastructure company would further secure TikTok's U.S. user data, Financial Times reported (subscription required) in April.
Last week, Oracle gave a bullish forecast for its cloud business, which drove its shares up 36% on Sept. 10.
Jim Cramer is bullish on TikTok’s potential buyer
Jim Cramer, the popular host of CNBC's "Mad Money" TV show, has offered a bullish three-word message on the stock of the company that will own TikTok.
“Buy their stock,” Cramer said on Sept. 15, referring to the potential buyer of TikTok.
He noted the privately held app’s unmatched advertising power. “You can take this thing to the limit,” he said.
“One thing we do know is that’s the best targeted ad in the world,” Cramer added. “If you’re one of these consumer products companies, this is the best way to reach somebody other than to be in maybe Amazon and Google — and maybe better than Amazon and Google. It’s huge.”
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