Oracle warns that a TikTok ban would hurt business
Posted: Jun 25, 2024
- A U.S. ban on TikTok could harm Oracle's business - President Biden signed a bill requiring TikTok to sell in the U.S. - Oracle provides cloud services for TikTok - Oracle fears revenue and profit loss if unable to provide services to TikTok - Oracle has an excellent relationship with TikTok - TikTok initiated Project Texas to use Oracle's cloud services in the U.S. - TikTok filed lawsuit against legislation targeting it - Potential buyers for TikTok include Frank McCourt and Steven Mnuchin - Oracle's financial ties to TikTok are not disclosed - Evercore analysts estimate TikTok could spend $480 million to $800 million on cloud infrastructure annually if generating $16 billion in U.S. sales - Oracle's cloud infrastructure revenue for the year was $6.9 billion - Oracle warned that a ban on TikTok in the U.S. could hurt its revenue and profit - President Joe Biden signed a bill in April demanding that ByteDance sell TikTok in 9 months to avoid a ban - Oracle provides cloud infrastructure for TikTok, which has over 150 million users in the U.S. - Oracle's annual report stated that if they are unable to provide services to TikTok, their revenues and profits would be impacted - TikTok filed a lawsuit against the legislation mandating its sale, arguing that it violated free speech protections - Real estate investor Frank McCourt and former Treasury Secretary Steven Mnuchin have expressed interest in buying TikTok, but no deal has been made - Oracle's financial ties to TikTok have not been disclosed, but analysts estimate TikTok may be spending $480 million to $800 million annually on cloud infrastructure - TikTok did not immediately respond to a request for comment
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