ByteDance values TikTok at $60 billion for US deal
What's the story
Chinese giant ByteDance is said to have valued TikTok at an approximate $60 billion.
The estimate, first reported by Bloomberg, comes as Walmart and Oracle continue to move forward with a deal to cumulatively take a 20% stake in the hit video service, as required by the Trump administration due to national security concerns.
Here is all you need to know about it.
Deal
Oracle taking 12.5%, Walmart 7.5%
Under the deal, Oracle has agreed to take a 12.5% stake in TikTok - which will be structured as an entity named TikTok Global - and become its technology provider, data manager with Oracle Cloud. Meanwhile, Walmart will take a 7.5% stake.
President Donald Trump, who initially wanted an outright sale of TikTok US, has also approved the deal, while Beijing's approval remains pending.
Quote
Here's what Trump said on the deal
"I approved the deal in concept," Trump told reporters on Saturday as he left the White House for a campaign rally in Fayetteville, North Carolina. "If they get it done, that's great. If they don't, that's OK too."
Valuation
Valuation at $60 billion, per Bloomberg's sources
Speaking to a person familiar with the details of the deal, Bloomberg has learned that ByteDance, which currently owns TikTok, has valued the company at a whopping $60 billion.
This means that Walmart and Oracle will be jointly paying about $12 billion to take a 20% stake in the global firm. The remaining 80% will stay with ByteDance itself.
Statement
No official word from the companies yet
All the companies involved have confirmed the deal but they are still to announce the exact financials of the arrangement.
Bloomberg's source says that the final valuation was not initially set as the firms worked out the equity structure and the measures to ensure full security of US users' data.
Also, the proposed $60 billion valuation could also change, moving ahead.
Jobs
TikTok Global will also be creating 25,000 jobs
In addition to this, TikTok Global will also be expanding its US headquarters, creating about 25,000 jobs - up from 1,000 at the moment.
Additionally, the company will also pay over $5 billion in new taxes to the US Treasury Department and would deliver an artificial-intelligence driven online video curriculum to teach kids about basic reading and math to history, science, and other subjects.