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Oracle’s TikTok Deal is All About Advertising, Says SteelHouse CEO

Written by Tim Edmundson

Oracle’s Ad Business Will Greatly Benefit From TikTok Partnership

Oracle made headlines this week when it beat out Microsoft for a deal to acquire the US operations of the uber popular social platform TikTok. The last-minute swoop sees Oracle become TikTok’s “technology partner” in the US, meaning they’ll host TikTok’s data in their cloud service stateside—alleviating fears from the Trump administration among others around data security.  

With the data hosting moving to the US, Oracle’s cloud hosting business will be bolstered. But while the data aspect of the deal may be getting most of the attention, there’s another benefit for Oracle that’s going overlooked–and could be the real reason Oracle decided to make the deal. 

“The second part of this I think it’s not well understood and I think we should talk about,” said SteelHouse CEO Mark Douglas today on CNBC, “Is that Oracle is actually a big player in the advertising business and that’s one of the reasons this makes a lot of sense for Oracle.” 

Oracle is the largest seller of advertising data in the world, with billions worth of acquisitions over the past 7 years. TikTok will help them grow their ad business even more, not only as a platform that can sell advertising directly, but also with the enormous amount of new user data that Oracle can leverage across their entire ad business.