O TikTok has until November to sell its operations in the American market and avoid a ban, but the acquisition agreement can be announced later this Tuesday (1st). According to the CNBC, the Chinese app has already chosen a buyer and the transaction is expected to be between $ 20 billion and $ 30 billion.
Microsoft is the most highly rated to take over TikTok outside of China and has already confirmed its intention to buy social network operations in the United States, Canada, Australia and New Zealand. Another American company interested in acquiring TikTok is Oracle, which would count on the help of venture capital companies, such as Sequoia Capital and General Atlantic, which have a stake in TikTok.
Walmart may buy TikTok together with Microsoft
The surprise must go to Walmart: CNBC informs that the retail giant is considering strengthening its e-commerce strategy with TikTok and would be interested in acquiring a minority stake in the social network in a joint offer with Microsoft.
Originally, Walmart would make a proposal to be the majority partner and buy TikTok in a consortium formed by Alphabet and SoftBank, but the owner of Google and the Japanese conglomerate would have given up on the deal, according to the vehicle. As the American government wanted a technology company to lead the negotiations, the solution found by Walmart was to look for Microsoft.
The interim CEO of TikTok, Vanessa Papas, says that the social network of short videos is “very focused on launching some e-commerce resources”, which would create common interests with Walmart, one of the possible new owners. “We have been providing these resources to our community of creators as another way of earning a living,” says Papas.
If the rumors are right, the buyers and the sale price of TikTok will be announced this Tuesday (1st). The ban threat has existed since Trump said that Chinese platforms “threaten national security, foreign policy and the US economy” because they capture a lot of user data and could send the information of American users to the Chinese government.
Tecnocast 156 – The dispute for TikTok
The United States is not happy with China’s growth in technology. After the sanctions against Huawei, Trump’s big target is TikTok, owned by Chinese ByteDance. The social network can be completely banned from the country if it is not sold to a “very American” company, such as Microsoft. Tencent’s WeChat messaging app was also affected.