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ORACLE SPEAKS ON TIK TOK DEAL: Even after CNBC reported that the Chinese government was expected to approve the Walmart (WMT) and Oracle (ORCL) deal for 20% of TikTok Global, Oracle announced it a statement to reporters that Tik Tok would be completely divested from ByteDance. Russell Brandom of The Verge reported that the company’s statement was a “significant break” from previous reports regarding the deal between the two companies.
ANALYSTS WEIGH IN: On Monday. William Blair analyst Jason Ader called the TikTok deal a “major coup” for Oracle. Ader cited potential to monetize the upside of its 12.5% stake after an eventual public offering and a “massive” new hosting customer for the company’s cloud infrastructure service. On the other hand, Morgan Stanley analyst Keith Weiss said finding further synergies, aside from the win for cloud infrastructure, in the deal with Oracle’s existing business units may prove difficult . Weiss noted investors likely need more details around the OCI segment to understand if this deal represents a true “thesis-changer” for Oracle and that the reported $60B valuation looks expensive, he told investors in a research note.
UPDATE ON CFIUS TALKS: CNN reported negotiators in the TikTok deal aim to finalize talks with the Committee on Foreign Investment in the U.S, which includes officials from the Treasury, Commerce and Homeland Security departments, on Friday. Sources said that some details that still need to be worked out included if Oracle can make changes to ByteDance code for TikTok security.
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