TikTok deal with Walmart and Oracle in jeopardy due to the US-China tensions
At the end of last week, we discussed a potential IPO that is said to happen in 2021; new information came from China.
According to the English version of the official newspaper of the Chinese Communist Party – China Daily – the mainland has no valid reason to approve a deal that, from its point of view, is "dirty," "unfair," and based on "bullying and extortion" and will not allow Oracle and Walmart to acquire #TikTok.
Moreover, the US is threatened by the app's success, and to turn the tables, it uses "national security issues" to ban the video-sharing app. This statement followed one released at the beginning of the week by Global Times in which was said that China wouldn't approve the deal.
To make the deal even harder to complete, Beijing has modified a set of rules that restrict a specific AI-technology sale to foreign buyers. However, ByteDance stated that it would establish a US subsidiary.
From now on, what one can do is wait and see how things will further develop, as the September 20 deadline set by Trump Administration for TikTok to be bought passed, and Oracle and Walmart haven't yet reached a viable partnership with TikTok.
The news was a hard pill to swallow for Oracle, as during today's pre-market session, it lost more than 1.60%. On the other hand, Walmart gained 0.28%.
Read about TikTok's potential IPO here!
Sources: techcrunch.co, finance.yahoo.com, reuters.com
Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.
Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance and forecasts are not reliable indicators of future results.