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| Tik Tok has a value of $ 60 billion |
Bloomberg reported Sunday that Chinese company ByteDance was aiming to value $ 60 billion for a TikTok app when Wal-Mart and Oracle acquired shares in the short video applications sector to address security concerns in the United States. .
Under the deal approved by President Donald Trump, Walmart and Oracle are entitled to acquire 7.5% and 12.5%, respectively, of the new global company, TikTok.
Bloomberg reported that if the two companies agreed to a $ 60 billion valuation, they would pay out a total of $ 12 billion in shares.
The Bloomberg report added that due to the company's inventory structure and data security measures, the final classification has yet to be determined.
The terms are always changing, the proposed classification may change, and Beijing has not accepted the deal despite any deal being approved by the regulator as ByteDance retains control over valuable recommendation algorithms and other technologies.
When Trump threatened to block the app in the US for national security reasons, ByteDance came under pressure from TikTok transactions.
Bytedance switched to Oracle offering. Oracle rejected Microsoft's offer to acquire all services, and Oracle still holds a controlling stake in Oracle.
As negotiations between Washington and Beijing intensified, the TikTok valuation posed an urgent problem: in the US market alone, the service costs were estimated at between $ 20 billion and $ 50 billion.
ByteDance, the Beijing-based parent company, is one of the world's most valuable emerging private companies with a market value of $ 140 billion.
The TikTok Global transaction does not include the Chinese version of the Douyin app, which has been extremely successful on its own.
ByteDance will likely own 80% of the shares (TikTok Global) including execution in the United States and other parts of the world excluding China.
Walmart and Oracle said: TikTok Global plans to go public within 12 months.
Oracle has full access to TikTok source code and updates to ensure that the Chinese parent company is not using backdoors to collect data or monitor the 100 million US users of this sharing app. Videos.
On Saturday, US President Donald Trump said he is mainly supporting a deal that would allow TikTok to continue operating in the United States in hopes of raising $ 5 billion to raise American children. Receipt. .