TikTok will be sold within ‘coming days’ to either Microsoft and Walmart or Oracle, in a $20-30billion deal that comes three months before Trump’s deadline for the Chinese-owned video app to be sold to a US entity.
Both Microsoft and Oracle expressed interest in the app after Trump ordered ByteDance, the Chinese tech company that owns it, to sell it to a US entity or risk losing all its American customers.
He said it was a national security risk because it had access to more than 100million Americans’ data.
On Thursday it emerged that Microsoft and Walmart were teaming up in their bid. It came after fears among US investors in ByteDance questioned whether they’d have a place in a Microsoft sale.
The Wrap cited sources who said Oracle was the preferred buyer and that their offer – which has the backing of Trump – is $10billion in cash and $10billion in Oracle stock.
Half of TikTok’s profits will go back to ByteDance for two years, their sources said.
Larry Ellison, who owns Oracle, is a Trump donor. Trump backed Oracle as the buyer earlier this month, calling it a ‘great company’ and saying: ‘I think that Oracle would be certainly somebody that could handle it.’
In a statement announcing their partnership with Microsoft on Thursday, Walmart said it was eager to be involved in the app which has merged e-commerce with social media and video.
‘We believe a potential relationship with TikTok US in partnership with Microsoft could add this key functionality and provide Walmart with an important way for us to reach and serve omnichannel customers as well as grow our third-party marketplace and advertising businesses. ….