ByteDance is included in TikTok Global
The uncertainty about the future of the social media platform TikTok has come to an end after US President Donald Trump approved in principle the agreement signed by the three companies at the weekend.
ByteDance, the Chinese owner of TikTok, who is in danger of being banned in the US, has reached an agreement with Oracle, the world’s second largest software company, and retail giant Walmart.
Accordingly, US companies Oracle and Walmart will buy 20 percent of ByteDance, thus running TikTok’s American operation.
Within the scope of the cooperation of the three companies, TikTok Global, whose headquarters will be located in the USA, will be established.
In the statement made by ByteDance on Monday, it was stated that the company named TikTok Global, which will be established in cooperation with Oracle, Walmart and ByteDance, will go public, so that the company aims to have a corporate management structure and transparency.
ByteDance will own 80 percent of TikTok
In the statement made by ByteDance, it was announced that TikTok Global, which will be established with the meaning of the USA, will have 80 percent shares. US President Donald Trump announced that he would ban TikTok in the US, citing national security concerns, and said that the operation of the application should be run by US companies and dominate the majority of shares as a way out.
In the statement of ByteDance, it was announced that the company will hold 80 percent of TikTok Global and Oracle, which is a US company, will have 12.5 percent and Walmart will have 7.5 percent.
Oracle and Walmart had previously announced that TikTok Global’s majority stake would be owned by US companies.
In its statement, ByteDance also announced that the amount in question is the estimated tax amount for the next few years and has nothing to do with the agreement, after Trump said that with the agreement, $ 5 billion will enter the US’s coffers with taxes and will be transferred to the US education fund. .
60 billion dollars valuation is expected
- In previous media reports, it was stated that Oracle and Walmart will own 20 percent of the company.
- In the distribution of shares, Oracle has 12.5 percent; It was reported that Walmart will hold a 7.5 percent stake.
- Oracle is expected to bring cloud technology expertise to TikTok Global and retail and e-commerce experience from Walmart, one of the world’s largest retail companies.
- In the statement made by Oracle and Walmart at the weekend, it was stated that TikTok Global, which is expected to go public in the USA within a year, will pay $ 5 billion in tax to the US Treasury.
- TikTok, which has 100 million users in the USA, is expected to create employment for 25 thousand more people in the country.
- The deal also needs to be approved by the Chinese government.
- On the other hand, According to media reports, ByteDance expects TikTok’s valuation to reach $ 60 billion.
The fact that ByteDance will own 80 percent of TikTok Global shares shows that the worst case scenario has been circumvented and the firm is still “in the game”.
Tiktok Prohibition decision postponed
- Trump said in a statement on Saturday that he basically agreed to this agreement.
- Thus, the Treasury Department postponed its decision to ban American companies from working with TikTok from September 20 to September 27.
- Trump said in his previous statements that TikTok should be completely bought by an American company.
- The US leader stated that there are “reliable evidence” that TikTok was used to harm the US national security.
- In the United States, employees of the Department of Homeland Security, Department of Transportation Security and armed forces are prohibited from using TikTok.