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Top ByteDance investors pushing Oracle bid for TikTok

Yahoo Finance’s Brian Sozzi, Alexis Christoforous, and Ines Ferre discuss the bidding for the sale of TikTok’s U.S. operations.

Video Transcript

BRIAN SOZZI: The Clock is ticking for TikTok's parent company ByteDance to sell its US operations, and two major ByteDance investors are putting the pressure on Oracle to make its bid. Ines Ferre is back here with those details. Oracle still in play here, Ines, for real?

INES FERRE: [LAUGHS] I know. It had a lot of investors kind of scratching their heads because it doesn't really have a consumer-facing business, but nevertheless, the "Wall Street Journal" is reporting that General Atlantic and Sequoia Capital, two major investors in ByteDance, which is the parent company of TikTok-- each by the way, holds a seat on the board. Well, the "Wall Street Journal" is now saying that it's believed that these firms are the big drivers behind this Oracle push to become a bidder for TikTok.

Now, Microsoft had said when it first announced that it was in talks to perhaps acquire TikTok that it may bring in other investors. But according to this piece, General Atlantic and also Sequoia Capital were perhaps concerned that they would be left out of the deal. So that's where they came in with another potential tech partner.

And as I said, some people thinking, what, Oracle? If they thought Microsoft at first, Oracle was an even more out there sort of contender.

But, however, President Trump likes Oracle. Cofounder Larry Ellison of Oracle is a Trump supporter, so politically this could work out. But there could be definitely a conflict of interest because these firms hold seats on the board of ByteDance.

Also, this is very unclear as to whether or not this sale will go through. ByteDance just filed a lawsuit challenging President Trump's executive order putting a ban on TikTok. So a lot is to be seen of what happens with that lawsuit.

Of course, there are deadlines coming up. We know that Microsoft has been really reportedly the lead contender here as far as the company that could acquire TikTok. We know that Twitter had had some preliminary talks, but it's unclear as to where those have really gone, if anywhere at all.

So it's a wait-and-see game, but certainly this shedding a little bit of light on the background behind this push for Oracle to perhaps be the one that acquires TikTok. Brian.