TikTok Owner Seeking $60 Billion Valuation in US Deal

Joanna Estrada
September 20, 2020

Under the terms of the agreement between the two companies, Bytedance retains a majority of TikTok's assets and control over the algorithm, with Oracle and other United States investors taking minority stakes.

After President Donald Trump threatened to ban TikTok last month, the app was flooded with videos of users crying and telling their friends to go out and vote against Trump in retaliation for taking aim at their digital hangout.

"We have to have the total security from China", the POTUS said.

"The security will be 100%", Trump noted.

"I approved the deal in concept", Trump said, addressing reporters at the White House, according to reports.

There is still one further wrinkle to the story, as China would still need to approve the deal.

TikTok users in the US got a one-week reprieve from the Trump administration's download ban on the popular short-form video app.

TikTok Comms Twitter TikTok's full statement on the Trump Administration's announcement.

What is the proposed deal?

The report says that the company has explained to campaign officials "how the app works in detail", and how it has more than 100 million U.S. users, many of whom are of voting age.

Oracle CEO Safra Catz is also quoted in the company's news release, saying that "we are 100 percent confident in our ability to deliver a highly secure environment to TikTok and ensure data privacy to TikTok's American users, and users throughout the world".

In a tweet Saturday, TikTok confirmed that Oracle will become the "trusted technology provider" for the app, and said it's also working on a commercial partnership with Walmart.

Under the terms of the agreement reached early in the week, ByteDance would retain a majority of TikTok's assets and control over the algorithm, with Oracle and other USA investors taking minority stakes.

Although the clock is ticking, pardon the pun, TikTok is not going down without a fight.

President Trump said the new TikTok company will be "totally controlled by Oracle and Walmart".

Donald Trump said he has approved Oracle's bid for the U.S. operations of TikTok "in concept" - a deal forced by the president's orders last month declaring the popular video-sharing app a national security threat.

They use the app to share 15-second videos that often involve lip-synching to songs, comedy routines and unusual editing tricks.

It says it could pass user data to the Chinese government. Facebook Inc., the largest US social media company, employed about 45,000 people in 2019, while Twitter Inc. employed only 4,900, according to data compiled by Bloomberg.

The app is reported to have around 800 million active monthly users worldwide, most of whom are in the USA and India.

India has already blocked TikTok as well as other Chinese apps.

When do the TikTok and WeChat bans start?

"Never before has a President sought to ban an entire social media platform - used by a minority community to communicate - with such discriminatory animus and haste", Burke said.

Other reports by Click Lancashire

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