TikTok owner would seek payment of $60 billion per agreement with the US.

After Trump’s “blessing”, they reveal how much the owner of TikTok would ask for the deal. Owner of TikTok would look for a high va...

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  • After Trump’s “blessing”, they reveal how much the owner of TikTok would ask for the deal.
  • Owner of TikTok would look for a high value since there are two American companies that participate in the agreement.
  • In the agreement approved by Trump, the companies Walmart and Oracle would be shareholders of the new TikTok in the United States.

Behind the approval from President Donald Trump on a preliminary agreement, the owner of TikTok would seek as payment 60 billion dollars.

Bloomberg reported this Sunday that Chinese company ByteDance Ltd. seeks a $ 60 billion valuation for TikTok, as Oracle Corp. and Walmart Inc. are participating in the business that arose out of alleged concerns for the security of the United States, according to a person familiar with the matter.

According to the Bloomberg source, who asked not to be identified when discussing private negotiations, Oracle and Walmart have the right to purchase 12.5% ​​and 7.5%, respectively, of a newly established Global TikTok under a agreement that won the approval of President Donald Trump on Saturday,

The two companies would pay a total of 12 billion dollars for their shares if they accept that sale price, detailed the aforementioned media.

The final value had not been established as the parties draw up the capital structure and measures for data security, the source said.

Trump TikTok Walmart

The terms are still changing and the proposed value could still change. Beijing has yet to approve the deal, although regulators are said to favor any transaction in which ByteDance, the owner of TikTok, maintains control of its valuable recommendation algorithms and other proprietary technology.

As you will recall, ByteDance was pressured to agree to a deal by TikTok when Trump threatened to ban the popular short video app in the United States over alleged national security concerns.

After Microsoft Corp. made a proposal for the full purchase of the service, ByteDance turned to Oracle’s offer in which the Chinese parent would retain a solid majority stake.

“I approved the deal in concept,” Trump told reporters Saturday as he left the White House for a campaign rally in Fayetteville, North Carolina. “If they can, it’s great. If they don’t, that’s fine too, ”he commented.

TikTok owner agreed

Representatives for ByteDance and Oracle did not immediately respond to requests for comment from Bloomberg.

The value of TikTok has been a looming question as Washington and Beijing stepped up their rhetoric on the negotiations. The service for the US market alone has been estimated to be worth $ 20 to $ 50 billion, or even more. Snap Inc., for context, is trading at a valuation of $ 35 billion, Bloomberg said.

ByteDance, the Beijing-based parent company, is the world’s most valuable private startup at $ 140 billion, according to market researcher CB Insights.

The TikTok Global deal does not include the app’s Chinese twin Douyin, which has become a huge hit in its own right.

TikTok Responds to Trump

ByteDance may end up owning up to 80% of TikTok Global, which would include the app’s operations in the United States and the rest of the world, excluding China. Venture companies, including Sequoia Capital and General Atlantic, can also acquire shares in the new business, explained the aforementioned media.

Under the current proposal, there will be five seats on the TikTok Global board. Walmart CEO Doug McMillon will become a director, the retailer said in a statement.

TikTok Global will likely be based in Texas and will hire “at least” 25,000 people, Trump said. You will need to hire thousands of content moderators, engineers, and marketing staff previously located in China and around the world.

TikTok Global intends to hold an initial public offering within 12 months, Oracle and Walmart said. And Trump said on Saturday he wants $ 5 billion from companies to create a new US-based TikTok aimed at teaching American children “the real history of our country.”

According to Bloomberg, Oracle will have full access to review TikTok source code and updates to make sure there are no back doors used by the company’s Chinese parent to collect data or spy on the 100 million US users of the sharing app. videos, according to people familiar with the matter.

The American software giant has given guarantees that it can protect TikTok user data from foreign influence.

“Oracle will rapidly implement, scale and operate TikTok systems on Oracle Cloud,” CEO Safra Catz said in a statement. “We are 100% confident in our ability to provide a highly secure environment for TikTok and to ensure data privacy for US TikTok users,” he noted.

The post TikTok owner would seek payment of $ 60 billion per agreement with the US. appeared first on Hispanic World.