over 3 years ago • 2 mins
Chinese giant ByteDance – which just missed the deadline to sell TikTok’s US operations – has been told to boogie: the US announced a ban of the social media app on Friday 🚫
The ban – which also applies to Tencent-owned chat app WeChat – comes in two parts. From Sunday, Americans won’t be able to download the app, get software updates, or make any in-app transactions. And from November 12th, the app will be outlawed altogether – though TikTok might get back in America’s good graces if it agrees a sale by then.
Speaking of which, Oracle – alongside retail giant Walmart and a handful of private investors – overtook Microsoft last week to become the favorite to take on a stake in TikTok. Nothing can be made official till both the US and Chinese governments sign off, mind you ✍️ For the US, that means agreeing to keep American users’ data Stateside, while for China, it means making sure TikTok-parent ByteDance hangs on to its proprietary algorithms.
When Microsoft and Oracle first entered the fray, investors initially bought into them both. But now that the most likely deal structure will leave Oracle just a part-owner of TikTok, those investors – potentially concerned by a smaller share of profit – initially ditched its shares on Friday 📱 Still, TikTok’s mooted plan to list on the stock market within a year quickly brought them back: the video app’s likely worth at least $50 billion, which could mean a potential windfall for Oracle and its shareholders.
In recent years, the US-China trade war has escalated from agriculture to companies. And investors seem to think this strategy will pay off in at least one way: American social media stocks – Facebook, Twitter and Snap’s – rose on Friday, likely because they’ll benefit from less TikToking.
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