China New Restrictions Slow ByteDance TikTok Deal
Source: Pixabay

China's New Restrictions Slow ByteDance's TikTok Deal

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Aug. 31 2020, Published 9:17 a.m. ET

New Chinese restrictions have slowed down or derailed ByteDance’s TikTok deal discussions with U.S. companies. The Chinese government updated its list of technologies subject to export restrictions. China included the AI technology used by social-media app TikTok. The new rule will likely complicate TikTok’s sale in the U.S.

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TikTok's sale news

Over the weekend, ByteDance said that it needs a license from the Chinese government before it can sell TikTok’s U.S. operations. Earlier, the Trump administration said that it would ban TikTok in the U.S. if it doesn’t sell its U.S. business to an American company by Sept. 20.

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According to a CNBC report, TikTok has chosen a bidder for its U.S. operations. The deal could be announced as soon as Sept. 1. The two top contenders for the deal are Oracle and Microsoft in partnership with Walmart. The sale price will likely be between $20 billion and $30 billion. TikTok representatives declined to comment on the matter.

tiktok deal
Source: Getty
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When is TikTok getting banned?

India has already banned TikTok along with 58 other Chinese applications like WeChat, ShareIt, and UC Browser. White House has threatened to ban TikTok in the U.S. starting on Sept. 20 due to privacy issues.

Who owns ByteDance?

ByteDance is a Chinese multinational internet technology company based in Beijing. The company was founded by Zhang Yiming in 2012. ByteDance is backed by SoftBank Group, Sequoia Capital, Kohlberg Kravis Roberts, General Atlantic, and Hillhouse Capital Group.

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What is ByteDance's stock symbol and stock price today?

ByteDance stock isn't listed yet as a privately held company. However, the public is eagerly awaiting an IPO from ByteDance this year.

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byte dance
Source: Getty

Walmart's and Microsoft's stock price today

On Aug. 31, Walmart stock was down about 2.9 percent at $136.20 in pre-market trading. The stock rose 2.7 percent on Aug. 28 and closed at $140.30 with a market capitalization of $397.3 billion. The stock has risen by 6.8 percent in the last five days and 22.8 percent in the last year. Walmart stock is trading 0.5 percent below its 52-week high of $141.07 and 37.5 percent above its 52-week low of $102.00. Year-to-date, the stock had risen by 18.1 percent as of Aug. 28.

On Aug. 31, Microsoft stock was down about 1.9 percent at $224.55 in pre-market trading. The stock rose 1.0 percent on Aug. 28 and closed at $228.91 with a market capitalization of $1.7 trillion. The stock has risen by 7.1 percent in the last five days and 66.1 percent in the last year. Microsoft stock is trading 1.0 percent below its 52-week high of $231.15 and 72.7 percent above its 52-week low of $132.52. Year-to-date, the stock had risen by 45.2 percent as of Aug. 28.

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