The President of the United States, Donald Trump, said in a statement over the weekend that the proposed deal that would enable TikTok to avoid a ban in the U.S. was agreeable for the government. Originally, the President had ordered ByteDance (owner of TikTok based in China) to divest the video-sharing social network.
As per the new deal, TikTok Global will be a United States-based entity. Oracle Corporation (NYSE: ORCL) will own 12.5% of the new company. Oracle published its earnings report for the fiscal first quarter earlier in September that topped analysts’ estimates for earnings and revenue.
Oracle opened roughly 5% up in the stock market on Monday but lost about 3% in the next few hours. At £47.21 per share, Oracle is now close to 10% up year to date in the stock market after recovering from a low of £31.10 per share in March. Interested in investing in the stock market? Here’s a simple guide to get you started.
The two companies will pay £9.38 billion combined
Walmart Inc. (NYSE: WMT) will also have a 7.5% ownership stake in TikTok Global. The two companies, as per the sources, will pay £9.38 billion combined, under the terms of the proposed agreement.
A report on Monday also highlighted that ByteDance was seeking to value TikTok at £46.89 billion in the U.S. TikTok Global will seek a U.S. listing possibly in 2021.
Sources also confirmed that the new company will have a board comprising of five members in total. CEO Doug McMillon of Walmart will take one of these seats. In related news, Walmart expanded its footprint in fashion as it introduced a new private clothing label for men
