“Even with high expertise and the required adtech, it will take between eight to 18 months to create a scalable, significant operation,” Shah mentioned. “The absence of an present staff aware of TikTok’s ecosystem provides one other layer of complexity.”
The acquisition might present Oracle with a invaluable foothold within the U.S. media panorama however the transition wouldn’t be instant, Shah famous.
“Advertisers wouldn’t know whether or not they can proceed spending on the platform, because the shift from ByteDance to Oracle would take time,” he mentioned, including that it’s extremely unlikely TikTok could be absolutely operational underneath Oracle by the April fifth deadline.
A really totally different kind of advert enterprise
Oracle might have some organizational muscle reminiscence round promoting which may make it really feel extra snug buying a enterprise like TikTok.
Nevertheless, TikTok’s core product is content material, and serving adverts round that content material, slightly than promoting know-how, Oracle’s former advert enterprise.
“Content material is fleeting,” mentioned Arslanian. “You possibly can create nice know-how that individuals love, but when the content material stops, it makes every thing a lot more durable to maintain.”
A tradition conflict
Oracle is well-regarded for its M&A strategy, mentioned Arslanian, notably its methodical strategy to integrating acquired corporations into its steady, enterprise-focused construction. Its acquisitions embody corporations just like the {hardware} options supplier MICROS Programs and Sauce Video, a content material creation and sourcing platform.
Nevertheless, the mixing course of might show tough with TikTok, which has a fast-paced innovation cycle that contrasts sharply with Oracle’s course of, Arslanian famous.
“These two conflicting views will make this deal a problem,” Arslanian mentioned.
