Oracle, the multinational computer technology corporation, has warned that a potential ban on TikTok in the United States could have negative effects on its profits. The popular video-sharing app has been at the center of controversy due to concerns over the security of user data and its ties to the Chinese government.
If TikTok were to be banned in the US, it could impact Oracle’s cloud business, as the company has been in talks to acquire the US operations of TikTok. This acquisition would give Oracle control over TikTok’s valuable data and could bolster its position in the cloud computing market.
However, with the recent executive order from President Trump calling for TikTok to be banned in the US unless it is sold to an American company by September 15th, Oracle’s plans could be in jeopardy. The company is now facing uncertainty over the future of its potential deal with TikTok.
Oracle’s warning about the potential impact on its profits highlights the stakes involved in the ongoing negotiations surrounding TikTok. The company’s cloud business is a key source of revenue, and any disruptions caused by a TikTok ban could have significant financial implications.
In addition to the financial concerns, Oracle is also likely considering the broader implications of a TikTok ban on its reputation and relationships with other tech companies. Being involved in a controversial acquisition of TikTok could potentially damage Oracle’s standing in the industry and affect its ability to secure future partnerships.
Overall, Oracle’s warning about the potential impact of a TikTok ban on its profits underscores the complex nature of the current situation. The company is faced with a high-stakes decision that could have far-reaching consequences for its business and its relationships within the tech industry. As the deadline for the TikTok sale approaches, Oracle will need to carefully navigate the challenges ahead to protect its interests and maintain its position in the market.
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https://www.marketwatch.com/amp/story/oracle-warns-tiktok-ban-could-hurt-earnings-1a7a6293