China’s ByteDance Ltd. seeks a $ 60 billion valuation for TikTok as Oracle Corp. and Walmart Inc. take stakes in the short-video app business to address U.S. security concerns, according to a person familiar with the matter. with the matter.
Oracle and Walmart have the right to buy 12.5% and 7.5%, respectively, of a newly established TikTok Global under a deal that got the approval of President Donald Trump, said the person, who asked not to be named. when it comes to private negotiations. The two companies would pay a total of $ 12 billion for their stakes if they accept that sale price.
The final valuation price had not been set as the parties worked out the capital structure and measures for data security, the person said. The terms are still changing, and the proposed valuation could still change.
ByteDance was pressured to settle for TikTok when Trump threatened to ban the app in the US over national security concerns. After Microsoft Corp. made a proposal for the full purchase of the service, ByteDance instead turned to Oracle’s offer in which the Chinese parent will retain a solid majority stake.
“I approved the deal on concept,” Trump told reporters Saturday as he left the White House for a campaign rally in Fayetteville, North Carolina. “If they do, that’s great. If they don’t, that’s okay too.”
Representatives for ByteDance and Oracle did not immediately respond to requests for comment.
ByteDance may end up owning up to 80% of TikTok Global, which would include the app’s operations in the US and the rest of the world except China. Venture firms, including Sequoia Capital and General Atlantic, may also acquire shares in the new business.
Under the current proposal, there will be five seats on the TikTok Global board of directors. Walmart CEO Doug McMillon will become a director, the retailer said in a statement.
Oracle has assured that it can protect the data of TikTok users from foreign influence.
“Oracle will rapidly implement, scale and operate TikTok systems on Oracle Cloud,” Oracle CEO Safra Catz said in a statement. “We are 100% confident in our ability to provide a highly secure environment for TikTok and ensure data privacy to US TikTok users.”
The company will have full access to review TikTok’s source code and updates to ensure that the company’s Chinese parent company does not use backdoors to collect data or to spy on the video-sharing app’s 100 million US users, according to people familiar with importing.
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