You are here: Home » International » News » Companies
Business Standard

TikTok owner ByteDance seeks $60 bn valuation in Oracle, Walmart deal

Oracle and Walmart have rights to buy 12.5% and 7.5% respectively of a newly established TikTok Global under an agreement that won the approval of President Donald Trump

Topics
TikTok | ByteDance | Oracle

Zheping Huang | Bloomberg 

bytedance, tiktok
ByteDance was pressured into a deal for TikTok when Trump threatened to ban the app in the U.S. over national security concerns.

China’s Ltd. is seeking a valuation of $60 billion for as Corp. and Inc. take stakes in the short-video app’s business to address U.S. security concerns, according to a person familiar with the matter.

and have rights to buy 12.5% and 7.5% respectively of a newly established Global under an agreement that won the approval of President Donald Trump, the person said, asking not to be named discussing private negotiations. The two would pay a combined $12 billion for their stakes if they agree to that asking price.

The final valuation price had not been set as the parties worked out the equity structure and measures for data security, the person said. Terms are still in flux and the proposed valuation could still change.

was pressured into a deal for when Trump threatened to ban the app in the U.S. over national security concerns. After Microsoft Corp. made a proposal for a full buyout of the service, instead turned to Oracle’s offering in which the Chinese parent will maintain a solid majority stake.

“I approved the deal in concept,” Trump told reporters Saturday as he left 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 OK too.”

ALSO READ: ByteDance says not aware of $5 billion education fund in TikTok deal

ByteDance and representatives didn’t immediately respond to requests for comment.

ByteDance may end up owning as much as 80% of TikTok Global, which would include the app’s operations in the U.S. and the rest of the world excluding Venture firms, including Sequoia Capital and General Atlantic, may also acquire equity in the new business.

Under the current proposal, there will be five seats on the board of TikTok Global. Walmart’s Chief Executive Officer Doug McMillon will become a director, the retailer said in a statement.

Oracle has given reassurances that it can protect TikTok user data from foreign influence.

“Oracle will quickly deploy, rapidly scale, and operate TikTok systems in the Oracle Cloud,” said Oracle CEO Safra Catz in a statement. “We are a 100% confident in our ability to deliver a highly secure environment to TikTok and ensure data privacy to TikTok’s American users.”

The company will get full access to review TikTok’s source code and updates to make sure there are no back doors used by the company’s Chinese parent to gather data or to spy on the video-sharing app’s 100 million American users, according to people familiar with the matter.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, September 20 2020. 14:02 IST
RECOMMENDED FOR YOU
.