Yesterday, the race to buy TikTok's U.S. operations took a sharp turn after Walmart partnered with Microsoft on a bid. Oracle has also joined the fray, offering $20 billion in cash and stock for the popular video-sharing app’s U.S. operations.
What is TikTok?
TikTok is a Chinese-based video-sharing social networking service owned by ByteDance. TikTok is available on Android and iOS in most markets outside of China. TikTok CEO Kevin Mayer resigned yesterday due to ongoing turmoil surrounding the app's ban. TikTok has nearly 100 million active users in the U.S., up about 800 percent from January 2018.
Is TikTok banned?
TikTok is banned in India, and Australia is also planning to block it. The Trump administration has threatened to ban TikTok in the U.S. beginning Sept. 15 if TikTok’s U.S. assets aren’t sold to an American company. TikTok is asking $30 billion for its U.S. operations.
Microsoft and Walmart buying TikTok?
Yesterday, Walmart partnered with Microsoft in a bid to buy TikTok’s U.S. operations. The financial details of the deal haven’t yet been disclosed. According to CNBC, Walmart said, “We believe a potential relationship with TikTok U.S. in partnership with Microsoft could add this key functionality and provide Walmart with an important way for us to reach and serve omnichannel customers as well as grow our third-party marketplace and advertising businesses.”
Oracle also wants to buy TikTok
Oracle is also planning to buy TikTok’s U.S. operations, according to TheWrap. Oracle has offered to pay about $20 billion in cash and stock. The deal is likely to comprise $10 billion in cash and $10 billion in Oracle stock. In addition, Oracle has offered to pay back 50 percent of TikTok's annual profits to its owner, ByteDance, for two years.
What's Microsoft's stock price today?
This morning, Microsoft stock was up about 0.5 percent at $227.78 in premarket trading. The stock rose 2.5 percent yesterday and closed at $226.58 with a market capitalization of $1.7 trillion. Microsoft stock has risen by 6.4 percent in the last five days and 64.4 percent in the last year. It's trading 2.0 percent below its 52-week high of $231.15 and 71.0 percent above its 52-week low of $132.52. Year-to-date, the stock had risen by 43.7 percent as of yesterday.
What's Walmart's stock price today?
Walmart stock was up about 3.2 percent at $141 in premarket trading this morning. The stock rose 4.5 percent yesterday and closed at $136.63 with a market capitalization of $386.9 billion. Walmart stock has risen 3.8 percent in the last five days and 19.6 percent in the last year. The stock is trading 2.0 percent below its 52-week high of $139.35 and 34.0 percent above its 52-week low of $102.00. Year-to-date, the stock had risen by 15.0 percent as of yesterday.