The White House announced it had approved in principle a deal in which the social video network TikTok would sell a significant stake of its operations to Oracle and Walmart. Under the agreement, Oracle would own 12.5% of the newly created TikTok Global at a target valuation of $60B, while Walmart would own 7.5%—combined the two would pay $12B for their shares.
The news provides clarity on a saga that began after President Trump said he would ban the platform—owned by Chinese parent company ByteDance—over national security concerns (see deep dive). The deal falls short of full divestment, with ByteDance retaining majority ownership of TikTok Global. However, US investors own a substantial stake in ByteDance—sources say the combined stakes will surpass 50% US ownership, placing the new entity under de facto American control.
The decision delayed a ban on the app—used by more than 100 million Americans—set to kick in yesterday. Separately, a judge blocked a similar ban on WeChat while legal challenges were considered.
source : 1440 digest