TikTok to sell US operations for $30 billion in coming days

TikTok to sell US operations for $30 billion in coming days
  • Clock-gray 22:27
  • calendar-gray 27 August 2020

TikTok will sell its US operations in the coming days as the company is finalising a deal, CNBC reported, citing people familiar with the matter, APA reports citing Sputnik.

The agreement will also include the sale of its operations in Australia, Canada, and New Zealand and is estimated to be valued at between $20 and $30 billion. Two of the people who spoke to CNBC said that the company is still discussing bids from Microsoft, Oracle, and a third US company. Recently, Walmart confirmed its involvement in the sale and said it would partner with Microsoft. Walmart’s shares rose by three percent after the announcement. The news about the potential deal comes on the same day as TikTok’s chief Kevin Mayer revealed that he would quit the company.

"In recent weeks, as the political environment has sharply changed, I have done significant reflection on what the corporate structural changes will require, and what it means for the global role I signed up for. Against this backdrop, and as we expect to reach a resolution very soon, it is with a heavy heart that I wanted to let you all know that I have decided to leave the company", Mayer wrote in a letter to employees.

His resignation comes several months after he was appointed TikTok’s CEO. Mayer did not expect TikTok to come under such intense pressure from US authorities, the Financial Times reported, citing people familiar with the matter.

"He has put himself in a sensitive political zone. He will have to align himself with both his Chinese masters and public scrutiny in the US. He didn’t sign up for this", a source told the Financial Times.

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