China’s ByteDance, which owns TikTok, is seeking a $60 billion valuation for a U.S.-based deal as U.S. technology company Oracle Corp. and retail giant Walmart Inc. take stakes in TikTok to address U.S. security concerns, Bloomberg News reported Sunday (Sept. 20), citing an unnamed source with knowledge of the matter.
Oracle announced Saturday (19) that it plans to take a 12.5 percent stake in the newly formed TikTok Global (Jitterbug International), as well as store all of its U.S. user data in the cloud to comply with U.S. national security requirements. Walmart, on the other hand, will hold a 7.5 percent stake.
If Oracle and Walmart agree to a $60 billion valuation, the two companies would spend a combined $12 billion on the stake, Bloomberg News reported.
Reuters requested comment, but Byte, TikTok, Oracle and Walmart did not immediately respond to Bloomberg News for this story.
The final valuation of TikTok’s U.S. deal has reportedly not yet been determined, as Oracle and Walmart are still working out the ownership structure and data security measures.
In order to ensure that 100 million Americans can continue to use TikTok, a popular video and content application, meet U.S. government regulatory requirements, and strengthen TikTok’s U.S. business, BytePop, Oracle, and Walmart have reached a consensus in principle on the cooperation of TikTok, according to a statement released by BytePop on Sunday. In accordance with this consensus, the three parties will reach a cooperation agreement that meets the legal requirements of the United States and China as soon as possible.
President Trump told reporters at the White House on Saturday (Sept. 19) that he had agreed “in principle” to the settlement the U.S. government received regarding TikTok, including the cooperation agreement between Oracle and TikTok. He said “I’ve given my blessing to the deal.
The deal in principle would allow TikTok to continue doing business in the U.S., though it appears to contradict Trump’s previous executive order for Byte Jump to divest itself of its video app.
Trump also said Saturday that the deal includes a $5 billion investment in education programs. He said “that’s the contribution I’m asking for”, and we’ll see if that happens next.
However, Byte Jump issued a clarifying statement on Sunday, saying, “We first heard about the $5 billion education fund in the news. The company is committed to investing in the education sector and plans to work with partners and global shareholders to launch AI and video technology-based online classroom programs for students around the world.
The U.S. Commerce Department said in a news release on its official website on Saturday that the ban on downloading the short-form video-sharing app TikTok in the U.S., which took effect on Sunday (20), has been postponed until Sept. 27 in light of recent positive developments.
Trump on Aug. 14 ordered byte-hopping to divest from TikTok, a video-sharing app operating in the U.S., within 90 days. He said in his order that “there is credible evidence that leads me to believe that ByteTok may pose a threat to the national security of the United States.
Trump issued an executive order on Aug. 6 barring Americans from trading with TikTok’s parent company, ByteHopper, on TikTok starting Sept. 20. U.S. officials are concerned that TikTok will hand over U.S. users’ data information to the Chinese government. ByteTok has denied this.
President Trump has taken further steps to have the application removed from U.S. online networks, citing national security concerns. The U.S. Congress also voted in July to ban federal employees from downloading the app on government-provided cell phones for national security reasons.
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