Does Microsoft have a new competitor in its race to buy TikTok's U.S. business?
According to reports in the Financial Times, Oracle (ORCL) - Get Oracle Corporation Report has entered preliminary talks with ByteDance, the parent company of Tiktok, expressing serious interest in the app’s operations in the U.S., Canada, Australia and New Zealand.
Sources familiar with the matter told FT that Oracle has been working with a group of U.S. investors that already own a stake in ByteDance, including General Atlantic and Sequoia Capital.
Though Jim Cramer has noted that he thinks there's a better buyer out there, Microsoft has been seen as the lead contender to buy TikTok's U.S. business ahead of President Trump's September deadline.
From Markman on Tech: Why Facebook Wins If Microsoft Buys TikTok
Amid heightened tensions with China, Trump signed an executive order to ban the popular video app on September 15 if it is not picked up by an American buyer. The app also faces possible banishment from U.S. app stores.
In response to the executive order, TikTok said it is considering legal action after saying it has attempted to discuss the administration's security concerns in good faith to no avail. "What we encountered instead was that the Administration paid no attention to facts, dictated terms of an agreement without going through standard legal processes, and tried to insert itself into negotiations between private businesses."
The move would follow similar action from India, which banned the app in June.
Unlike Twitter, which Cramer thought would be a bad fit for TikTok, Cramer thinks buying TikTok could change Oracle overnight and create serious value for investors.
Catch why in the video above.