TikTok Ban Sparks Divide: Oracle Backs Trump While Apple, Google Play It Safe

Apple Inc. AAPL, Alphabet Inc’s GOOG GOOGL Google and Oracle Corp ORCL remain divided in their approaches to TikTok as their vested interests play out.

TikTok’s cloud service provider, Oracle hailed Trump’s potential softer take on the ByteDance social media platform. Meanwhile, the app remains unavailable in Apple and Google’s app stores to comply with the January 19 ban, Bloomberg reports.

Also Read: AWS, Robotics, Prime Video Ads Fuel Amazon Growth Potential: Analysts

Oracle’s proximity with Trump and its business relations with TikTok give it enough reasons to assume potential legal risk.

Apple and Google, meanwhile, make minimal revenue from TikTok via in-app purchases compared to any potential fine they may face for violating the law, the report said.

Meanwhile, daily fines for supporting TikTok could climb into the billions of dollars.

According to the Bloomberg report, Oracle leaders have been conservative politics loyalists. CEO Safra Catz served on Trump’s transition team after the 2016 presidential election, and co-founder and Chairman Larry Ellison has donated to Republicans, including Trump.

Oracle’s proximity to Trump has paid off in the past. The cloud giant was Trump’s original pick to buy TikTok in 2020 when he tried to ban the app, citing national security reasons.

Though the deal ultimately fell apart after Trump left office, Oracle became TikTok’s cloud service provider under a compelling deal.

Ellison is also famously close to Trump’s ally, Elon Musk. Musk and Ellison have emerged as potential contenders for the TikTok acquisition, which could be the popular social media’s gateway to a $1 trillion valuation. Trump has expressed support for both of them.

Wedbush’s Dan Ives projected the sale, excluding its algorithm, could be worth $40 billion—$50 billion, possibly attracting 10 to 12 bidders.

On Monday, Trump suspended the TikTok ban for 75 days, creating a window for potential buyers.

Price Actions: At last check on Friday, ORCL stock was down 0.85% at $184.81. AAPL is down 0.21%.

Also Read:

• Amazon Pauses Drone Deliveries In Texas, Arizona After Crashes, Plans Safety Upgrades

Image via Shutterstock