Η ByteDance, its parent company TikTok, calls for a $ 60 billion valuation for its popular implementation, as Oracle Corp and Walmart Inc participate in the operations of technology companies in USA trying to address the security concerns posed by the President's administration Trump.
As he says Bloomberg, both Oracle and Walmart have the right to buy 12,5% and 7,5% respectively from the newly established TikTok Global, based on an agreement that has received the approval of President Donald Trump.
The companies will pay a total of $ 12 billion for their shares if they reach an agreement with TikTok, which requires the amount of $ 60 billion.
The final valuation is still under discussion, as both sides are working out their own funds and data security measures.
Η China has not yet approved the agreement, although regulators are said to have expressed support for any transaction in which ByteDance still retains control of its valuable algorithms and other proprietary technologies.
President Donald Trump has in the past threatened to ban TikTok, citing national security issues. However, many believe that this is a tactic followed due to the dispute between the US and China. This forced ByteDance to make a deal, as it wanted to avoid a ban by the US government.
U.S. officials have expressed concern about the security of the personal data of 100 million Americans being sent to servers in China.
ByteDance rejected a full takeover bid from Microsoft Corp, but rather agreed to Oracle's offer in which the Chinese parent company will continue to hold the largest share.
Trump's new stance seems to conflict with his previous ByteDance executive mandate.
ByteDance is currently struggling to circumvent the TikTok ban, after the US Department of Commerce said on Friday it would block new downloads and updates to the app from yesterday.