Wall Street is warming to a TikTok deal despite a continued lack of clarity, happy to keep a popular, fast-growing advertising platform humming along and skirt a brewing tech cold war between the U.S. and China.
“This will be a relief to technology investors to have this high drama soap opera now in the rear view mirror,” said Daniel Ives, an analyst at Wedbush Securities. He called the deal “a huge strategic win” for TikTok. “The company was facing the prospects of a forced sale or shutdown and now instead gets Oracle as a technology and strategic partner.”
As for Oracle, CEO Ralph Ellison will gain a new partner on the infrastructure and cloud front where it has trailed the likes of leaders Amazon and Microsoft, Ives said. Microsoft was the initial bidder for TikTok but was passed over in favor of investments by Oracle and Walmart.
Shares of both