According to a Bloomberg report on Sunday, China’s ByteDance Ltd is looking for a valuation of $60 billion for TikTok since Oracle Corp and Walmart take stakes in the short-video apps’ business to address US security issues.
Oracle will require a 12.5% stake in TikTok Global and save all of its US user information in its cloud to comply with US national security conditions, the firms said on Saturday. Retail giant Walmart stated it’d require a 7.5% stake.
ByteDance Wants to Value TikTok at $60 Billion in US Deal
As per the report by Bloomberg, both firms would pay a combined $12 billion for their stakes if they agree to some $60 billion asking price, ByteDance, TikTok, Oracle, and Walmart didn’t immediately respond to requests for comment on the report.
The Bloomberg report further mentioned that the final figure for the purchase hadn’t been set since the firms prepared the equity arrangement and steps for data protection..
US President Donald Trump on Saturday reported he encouraged a deal in principle, which would enable TikTok to continue to function in the USA, even though it seemed to contradict his former executive order to get China’s ByteDance to divest the video-sharing app.
ByteDance was rushing to prevent a crackdown on TikTok following the US Commerce Department said on Friday it might block new downloads and upgrades into the program from Sunday.
US.officials had voiced concern that the private data of as many as 100 million Americans who use the application were passed to China’s Communist Party authorities.