TikTok deal is withing days, not months


The departure of Kevin Mayer as the top man of video app TikTok may mean that the American branch of the company will be sold within a few days. Microsoft is the likely buyer, telling sources to the American news channel CNBC.

According to the initiates, Mayer was not involved in any discussions with Microsoft. The CEO wanted to run TikTok as an independent company, not as part of a larger technology group. It probably would be if Microsoft were the buyer.

TikTok has been a lot to do lately. In the United States there is a threat of a ban on the app. According to critics, TikTok collects too much data from his users and they think they could just fall into the hands of the Chinese government. TikTok’s parent company is Chinese. President Donald Trump has therefore issued a decree that TikTok will be banned in the US in mid-september unless the American branch is sold. Talks about a takeover are currently under way. The American branch of TikTok should generate between $ 20 billion and $ 30 billion.

The American supermarket Walmart has joined Microsoft in the attempt of the software company to enlist TikTok. Walmart would like to reach more customers using the social media platform.

Software Group Oracle would also have made an offer on the American branch of TikTok. That’s what entertainment website TheWrap says based on Insiders. Oracle’s bid would consist of $ 10 billion in cash plus $ 10 billion in its own shares. The current owner ByteDance would also receive half the profits TikTok would make in the first two years.

By: Oliver I. Kjeldsen

Oliver I. Kjeldsen has a corporate finance and extensive expertise in company audit. He grants us amazing insights on taxation, international affairs and friendly advice on nearly any topic of interest. His email is oliver.kjeldsen@economicinform.com

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