ByteDance owner of TikTok, seeks $60 billion valuation in US deal
According to a person familiar with the matter, China’s ByteDance Ltd is seeking a $ 60 billion valuation for TikTok, as Oracle Corp & Walmart Inc. place bets in the short video app business to address US security concerns.
Oracle & Walmart have rights to buy 12.5% and 7.5% under an agreement from a newly established TikTok Global,
Which won President Donald Trump’s approval, the person said, not named to discuss private negotiations.
If they agree to that price, the two companies will pay a combined $ 12 billion for their stake.
The final valuation value not determine because the parties work on equity structure & data protection measures, the person said.
Conditions are still in flux and the proposed evaluation may still change.
ByteDance pressure into an agreement for TikTok when Trump threaten to ban the app in the US over national security concerns.
Microsoft Corp made an offer for the full purchase of the service, after which ByteDance turned to Oracle’s offering,
In which the Chinese parent would retain a solid majority stake.
I accepted the concept, Trump told reporters Saturday after leaving the White House for a campaign rally in Fayetteville, North Carolina, if they get it done, That’s great. If they don’t, that’s fine.
Representatives for ByteDance & Oracle not immediately respond to requests for comment.
ByteDance may own 80% of TikTok Global, including the U.S. Will include China in the operation of the app & the rest of the world.
Venture firms including Sequoia Capital and General Atlantic can also acquire equity in new businesses.
Under current proposal, TikTok Global will have five seats on its board. Walmart chief executive Doug McMillon will become a director, the retailer said in a statement.
Oracle has assure that it can protect TikTok user data from foreign influences.
Oracle CEO Safra Catz said in a statement, Oracle will quickly deploy, accelerate and operate the TikTok system in the cloud. For US users of TikTok.
Furthermore, to ensure there are no back doors used by the company’s Chinese parent to collect data or to spy on 100 million American users of video sharing apps,
According to people familiar with it The company will get full access to TikTok’s source code and updates matter.