Oracle is about to agree to buy TikTok for $ 20 billion thanks to the support of the White House

The move comes in the context that CEO Kevin Mayer has just resigned, CEO of parent company ByteDance is in conflict with investors, and Microsoft's bid price is still hovering.

Oracle, the tech giant led by Larry Ellison, rose to the top of the race to acquire social networking app TikTok with a proposed $20 billion in cash and stock deal, according to TheWrap.

The proposed deal will include $10 billion in cash, $10 billion in Oracle stock and 50 percent of TikTok's annual profits going to China-based parent company ByteDance within two years, according to some individuals who are knowledgeable about this agreement.

Walmart also announced yesterday that it has partnered with Microsoft to bid for TikTok's business in the US, Canada, Australia and New Zealand. The terms of that deal have yet to be disclosed, but the retail giant is interested in the ecommerce aspect of the social app.

The move comes after Kevin Mayer, CEO of TikTok for almost 4 months, resigned on the night of August 26. In his letter before leaving, he wrote: "Under these circumstances, and while we all look forward to a resolution soon, I have to announce that I have decided to leave the company".

However, representatives from TikTok and Oracle declined to comment on this matter.
Walmart also expressed "craving for" with the TikTok pie.

But the proposed deal is compounded by a split between ByteDance CEO Zhang Yiming and General Atlantic and Sequoia Capital, two investors of ByteDance based in the US. These are organizations with a longstanding relationship with the Trump administration and Republicans who all want to see the deal take place soon.

"They approached the Oracle CEO to suggest the company buy TikTok and contacted the White House to close the deal," according to the two individuals with knowledge of the matter.

However, Mr. Zhang declined any acquisitions and did not inform his investors before filing a lawsuit against the US government on Monday to prevent any. Which takes place.

Furthermore, tensions have erupted between Mr. Trump's economic adviser, Peter Navarro, who has advocated a complete shutdown of TikTok over security concerns and Treasury Secretary Steven Mnuchin, who is trying to find a company in the US to acquire the domestic operations of this application.

"Mnuchin likes the deal with Oracle," one of the insiders said on Wednesday, a day before sudden and rapid developments took place on Thursday.

Venture capital funds and private investors also declined to comment. Spokesmen for the US Treasury Department and the White House did not respond to requests for comment either.

A bunch of American companies are watching TikTok and who will pay the most?
Microsoft, another top contractor on the deal, is also fighting fiercely for a deal, according to three individuals with knowledge of the discussions.

At first, Microsoft was interested in acquiring a majority stake in ByteDance, TikTok's parent company, because it owned the foundation technology to promote the extraordinary development of this social application. Its goal is to focus on the acquisition of TikTok's operations in the US, Canada, Australia and New Zealand.

But ByteDance, which is under pressure from President Trump to be forced to sell itself within 90 days of mid-August, is unlikely to sell any of it related to the underlying technology.

The individuals mentioned above also said former CEO Kevin Mayer is out of these negotiations. One person familiar with the issues negates that Mayer spoke to one of the CEOs of a potential bidder.

For its part, Microsoft shared on a blog in early August that it is likely interested in acquiring TikTok's operations in the US, Canada, Australia and New Zealand. This is considered a relatively comfortable negotiation with Mr. Zhang Yiming, who had a short stint with Microsoft in 2008.

Microsoft is arguably the best partner to buy TikTok, but in the current context it is difficult to say anything.
With its global reach, TikTok is now believed to be worth $100 billion - about three times bigger than publicly traded social media companies like Twitter or Snap. The company reported $17 billion in revenue last year and now has 800 million active users worldwide.

ByteDance has raised $7.45 billion since 2012. General Atlantic has invested in ByteDance twice, first as part of the company's $2 billion fundraising in December 2017 and again. in October 2018 for $3 billion, according to Pitchbook.com.

Sequoia Capital invested in ByteDance through its China division, Seqouia Capital China, in a Series C funding round of $ 100 million in June 2014 and raised $ 1 billion in April 2017.

And Doug Leone, one of Sequoia Capital's partners, was the primary sponsor of the re-election campaign of Mr. Trump and the Republican Party, according to Federal Election Commission filings. Mr. Leone and Bill Ford, CEO of General Atlantic, have come to work with the White House at a time when the clock is falling back to the deadline set by U.S President Trump.
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