Bids for TikTok are in, and ByteDance seems to realize that “writing is on the wall,” meaning a sale may be the only option with an executive order from U.S. President Donald Trump, according to Wedbush.
The TikTok Sale Analyst: Said Daniel Ives Microsoft Corporation (NASDAQ: MSFT) en Walmart Inc. (NYSE: WMT) have a 90% chance of winning the deal.
The TikTok Sale Takeaways: While deal negotiations are likely to be complex, given several issues with data and privacy issues being addressed, Microsoft seems to be “the only white knight in the round,” Ives said in a Friday note. (See his track record here.)
The FAANG tech giants – Facebook, Inc. (NASDAQ: FB), Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc. (ASDAQ: AAPL), Netflix Inc. (NASDAQ: NFLX) and Google parent Alphabet Inc. (NASDAQ: GOOGL) (NASDAQ: GOOG) – are caught up with regulatory care, the analyst said.
Microsoft, and not Oracle Corporation (NYSE: ORCL), seems to be the only U.S. technical stalwart “with the treasury, infrastructure and distribution to get a deal like this done,” given the complicated policies involved and the high price tag, he said.
Microsoft’s decision to buy TikTok is a good one, as the rating could grow from the current $ 35- $ 40 billion to almost $ 200 billion in a few years “if navigated properly,” Ives said. .
Walmart submitted Microsoft’s bid late, but is the “missing piece in the puzzle,” given TikTok’s potential e-commerce and advertising capabilities, the analyst said. This could confirm Microsoft’s victory in the acquisition process, he said.
Related Links:
TikTok CEO Kevin Mayer is stepping down, says US Push for a decision on sales pitch
TikTok Sale seems to be looking as Microsoft teams up with Walmart, Oracle finalizing bid
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