If you're seeing this message, that means JavaScript has been disabled on your browser.Please enable JavaScript to make this website work.

NewsPremium

TikTok avoids ban in the US as Trump agrees to Oracle-Walmart deal

Briefing
Your roundup of Asian tech and startup news that matter

Doris Yu · 21 Sep 2020 · 1 min read

TikTok avoids ban in the US as Trump agrees to Oracle-Walmart deal

Add TIA as a preferred source

“US President Donald Trump said on Saturday he supported a deal in principle that would allow TikTok to continue to operate in the United States, even as it appeared to conflict with his earlier order for China’s ByteDance to divest the video app,” Reuters reported.

Trump added that the new company TikTok Global will be based in the US. Oracle and Walmart will own a 12.5% and a 7.5% stake in it, respectively, and according to a source cited in a report by Bloomberg, the two companies will pay a combined US$12 billion. The report added that TikTok’s parent company ByteDance is seeking a valuation of US$60 billion for the video-sharing app.

Walmart CEO Doug McMillon will become one of the five board members of the new entity.

ByteDance also agreed to create 25,000 new jobs in the US, up from a little over 1,000 it has currently.

Reuters also reported that TikTok Global is planning an initial public offering possibly in the US, which could come in about a year.

Editing by September Grace Mahino

(And yes, we’re serious about ethics and transparency. More information here.)