Investment firms General Atlantic and Sequoia Capital are driving Cloud major Oracle's potential bid for TikTok which is under pressure to divest its US business, The Wall Street Journal reported. General Atlantic and Sequoia Capital have large stakes in TikTok's parent ByteDance which is a Chinese unicorn.
These two investment firms are pushing Oracle's potential bid for TikTok as they are concerned that they might miss out on some actions if Microsoft becomes successful in purchasing TikTok's business in the US, said the WSJ report on Monday, citing people familiar with the matter.
Oracle's Purchasing Bid
Microsoft revealed earlier this month its intention to buy TikTok's services in the US, Canada, Australia and New Zealand. A report in The Financial Times last week said that Oracle was also seriously considering purchasing the app's operations in these countries.
Executive Order Against TikTok
The pressure on ByteDance to sell TikTok's US business increased after US President Donald Trump issued an executive order on August 6 effectively threatening a ban on the app next month over national security concerns.
A subsequent executive order issued on August 14 gave TikTok an option to divest its US operation within 90 days. TikTok filed a lawsuit on Monday challenging the first executive order. The short video-sharing platform accused the US authorities of stripping the rights of the company without providing any evidence to justify the extreme action.