“Even with top talent and the necessary adtech, it would take between eight to 18 months to create a scalable, meaningful operation,” Shah said. “The absence of an existing team familiar with TikTok’s ecosystem adds another layer of complexity.”
The acquisition could provide Oracle with a valuable foothold in the U.S. media landscape but the transition wouldn’t be immediate, Shah noted.
“Advertisers wouldn’t know whether they can continue spending on the platform, as the shift from ByteDance to Oracle would take time,” he said, adding that it’s highly unlikely TikTok would be fully operational under Oracle by the April 5th deadline.
A very different type of ad business
Oracle could have some organizational muscle memory around advertising that might make it feel more comfortable acquiring a business like TikTok.
However, TikTok’s core product is content, and serving ads around that content, rather than advertising technology, Oracle’s former ad business.
“Content is fleeting,” said Arslanian. “You can create great technology that people love, but if the content stops, it makes everything much harder to sustain.”
A culture clash
Oracle is well-regarded for its M&A strategy, said Arslanian, particularly its methodical approach to integrating acquired companies into its stable, enterprise-focused structure. Its acquisitions include companies like the hardware solutions provider MICROS Systems and Sauce Video, a content creation and sourcing platform.
However, the integration process may prove difficult with TikTok, which has a fast-paced innovation cycle that contrasts sharply with Oracle’s process, Arslanian noted.
“These two conflicting views will make this deal a challenge,” Arslanian said.
