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This feels like such a strange acquisition for Oracle. Does anyone have insight on how Oracle envisions the TikTok brand and userbase adding value to the rest o

This feels like such a strange acquisition for Oracle. Does anyone have insight on how Oracle envisions the TikTok brand and userbase adding value to the rest of the company?

wrs 6y ago
Oracle needs cloud wins. I doubt they care about the actual functionality of TikTok. (Other than its Trump-annoyance functionality that is enabling this whole transaction, of course.)
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Firebrand 6y ago
Oracle becomes a trusted tech partner of Bytedance: “ByteDance started opening data centers in India and the US in 2019. This may be strictly for internal purposes, but its possible they plan to launch a cloud hosting service. ByteDance acquired Terark in 2019 which allows databases to run 200x faster by reading compressed data at 50% of the cost. If they launch an external service, the selling point could be faster processing and access to some of ByteDance’s AI tech. A cloud service combined with enterprise software (and eventually a phone or other hardware) would take a page out of Microsoft’s approach of bundling multiple products and selling them top down through the C- Suite.” https://turner.substack.com/p/the-rise-of-tiktok-and-understanding https://turner.substack.com/p/the-rise-of-tiktok-and-underst...
stale2002 6y ago
> Does anyone have insight on how Oracle envisions the TikTok brand and userbase adding value to the rest of the company? Sure. The answer is that there is no such significant added value to Oracle, specifically, but TikTok itself will end up selling for bargain basement prices, meaning that added value isn't necessary for an acquisition to make sense.
dodobirdlord 6y ago
I think this makes sense. Oracle isn't really acquiring TikTok, just its "US Operations". They presumably won't be responsible for developing algorithms, the app, or the backend, and will instead be running the service and hosting all of the data generated in the United States. Looked at this way, it's more like an unusually deep relationship with a cloud services provider than a buyout, and a huge win of business and reputation for Oracle Cloud.
- howlgarnish 6y ago
  But is it really a huge reputational win? Us geeks know that Tiktok's scale is huge, but your average bank is not going to be terribly impressed that Oracle is now hosting an app still widely viewed as some random frivolous teen twerk thing.
  - sudosysgen 6y ago
    I'd bet that TikTok continues expanding and becomes viewed as more than that.
  - xvector 6y ago
    > but your average bank is not going to be terribly impressed that Oracle is now hosting an app still widely viewed as some random frivolous teen twerk thing. Absolutely not. If anything, the young user base makes TikTok more valuable. It will be viewed as an analogue to Facebook before it exploded.
    - howlgarnish 6y ago
      I'm not doubting TikTok's own value, I'm questioning the assertion that owning TikTok will have reputational benefits for Oracle as a cloud hosting provider.
      - xvector 6y ago
        It’s an application with about a billion users. The benefits are tremendous. Banks are not dumb, they do their research before valuing corps
tootie 6y ago
It's worse than Yahoo acquiring Tumblr. And that killed Tumblr. How much of TikTok is porn right now?
throwcahnoish 6y ago
Everyone is making the usual Oracle joke once again... but Oracle owns BlueKai, one of the largest data collection companies. That is the answer. TikTok will feed straight into BlueKai. That data is the value it'll add to their company.
deleted 6y ago
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This feels like such a strange acquisition for Oracle. Does anyone have insight on how Oracle envisions the TikTok brand and userbase adding value to the rest of the company?

wrs 6y ago

Oracle needs cloud wins. I doubt they care about the actual functionality of TikTok. (Other than its Trump-annoyance functionality that is enabling this whole transaction, of course.)

deleted 6y ago
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deleted 6y ago

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Firebrand 6y ago

Oracle becomes a trusted tech partner of Bytedance: “ByteDance started opening data centers in India and the US in 2019. This may be strictly for internal purposes, but its possible they plan to launch a cloud hosting service. ByteDance acquired Terark in 2019 which allows databases to run 200x faster by reading compressed data at 50% of the cost. If they launch an external service, the selling point could be faster processing and access to some of ByteDance’s AI tech. A cloud service combined with enterprise software (and eventually a phone or other hardware) would take a page out of Microsoft’s approach of bundling multiple products and selling them top down through the C- Suite.” https://turner.substack.com/p/the-rise-of-tiktok-and-understanding https://turner.substack.com/p/the-rise-of-tiktok-and-underst...

stale2002 6y ago

> Does anyone have insight on how Oracle envisions the TikTok brand and userbase adding value to the rest of the company? Sure. The answer is that there is no such significant added value to Oracle, specifically, but TikTok itself will end up selling for bargain basement prices, meaning that added value isn't necessary for an acquisition to make sense.

dodobirdlord 6y ago

I think this makes sense. Oracle isn't really acquiring TikTok, just its "US Operations". They presumably won't be responsible for developing algorithms, the app, or the backend, and will instead be running the service and hosting all of the data generated in the United States. Looked at this way, it's more like an unusually deep relationship with a cloud services provider than a buyout, and a huge win of business and reputation for Oracle Cloud.

howlgarnish 6y ago
But is it really a huge reputational win? Us geeks know that Tiktok's scale is huge, but your average bank is not going to be terribly impressed that Oracle is now hosting an app still widely viewed as some random frivolous teen twerk thing.
- sudosysgen 6y ago
  I'd bet that TikTok continues expanding and becomes viewed as more than that.
- xvector 6y ago
  > but your average bank is not going to be terribly impressed that Oracle is now hosting an app still widely viewed as some random frivolous teen twerk thing. Absolutely not. If anything, the young user base makes TikTok more valuable. It will be viewed as an analogue to Facebook before it exploded.
  - howlgarnish 6y ago
    I'm not doubting TikTok's own value, I'm questioning the assertion that owning TikTok will have reputational benefits for Oracle as a cloud hosting provider.
    - xvector 6y ago
      It’s an application with about a billion users. The benefits are tremendous. Banks are not dumb, they do their research before valuing corps

tootie 6y ago

It's worse than Yahoo acquiring Tumblr. And that killed Tumblr. How much of TikTok is porn right now?

throwcahnoish 6y ago

Everyone is making the usual Oracle joke once again... but Oracle owns BlueKai, one of the largest data collection companies. That is the answer. TikTok will feed straight into BlueKai. That data is the value it'll add to their company.

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