|Precio de cierre del día anterior||79.65|
|Fecha de vencimiento||2020-10-16|
|Rango diario||73.35 - 113.90|
|Rango de contrato||N/D|
Tech stocks are suffering despite little change in the outlook, and the broader market is falling in their wake.
(Bloomberg) -- Oracle Corp. and Walmart Inc. plan an minority investment in TikTok Global, giving companies that have little experience in social media a stake in a fast growing music and video-sharing app that became the focal point of a trade standoff between the U.S. and China.Oracle and Walmart together could end up with as much as 20% of the entity, purchased in a round of financing that would precede an initial public offering, the companies said Saturday. Sequoia Capital and General Altantic, current investors in TikTok parent ByteDance Ltd., could also pursue stakes in the fundraising round, a person with knowledge of the matter said. ByteDance will retain majority control.ByteDance commenced a search for investors in TikTok’s U.S. operations after Trump proclaimed that TikTok was a threat to U.S. national security, and ordered the app be sold to an American business or shut down by Sept. 20. The president said Saturday that he gave his “blessing” to the “concept” of the deal, even though ByteDance will retain such a large stake.For Oracle, the partnership fits with a plan to become a provider of a broad range of computing services delivered via remote server farms, rivaling leaders Amazon.com Inc., Microsoft Corp. and Alphabet Inc. The strategy, announced with fanfare half a decade ago, had mixed success. As of last year, Oracle had grabbed such a small share of the cloud computing and storage market that research firm Gartner Inc. didn’t even tabulate the figure. In 2018 Gartner classified Oracle as a “niche player.”TikTok’s decision to pick Oracle was influenced by another company, Zoom Video Communications Inc., which recently moved some of its videoconferencing capacity to Oracle’s cloud business, Redwood City, California-based Oracle said Saturday in a statement.Oracle Chairman Larry Ellison said in a statement that TikTok chose Oracle “because it’s much faster, more reliable, and more secure than the first generation technology currently offered by all the other major cloud providers.”Walmart said that while terms aren’t final, it has tentatively agreed to buy 7.5% of TikTok Global and that it would provide services including payments, e-commerce and order fulfillment to the new company. Walmart Chief Executive Officer Doug McMillon will also serve as one of five board members of TikTok Global.“This partnership will provide Walmart with an important way for us to expand our reach and serve omnichannel customers as well as grow our third-party marketplace, fulfillment and advertising businesses,” Bentonville, Arkansas-based Walmart said in a statement.The move is part of a broader long-term play to bring more shoppers, advertisers and vendors into its camp as the lines between content and commerce continue to blur. The arrangement could also enhance its soon-to-launch delivery subscription service, making it a more credible threat to rival Amazon’s Prime offering. TikTok could become a platform to sell Walmart’s products, catapulting the 58-year-old Arkansas retailer into the emerging realm of “social commerce” against Facebook and its Instagram platform.The new minority owners have pledged to create 25,000 jobs through the new company.(Adds details on Walmart’s plans throughout)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Oracle Corp.’s agreement to take a stake in TikTok has won the long-awaited blessing of U.S. President Donald Trump.The proposal, which would give Oracle and other investors minority ownership of a new company called TikTok Global, still needs approval from regulators in China, where TikTok’s parent ByteDance Ltd. is based.Trump’s praise for the agreement suggests that weeks-long deliberations over the fate of a popular music and video-sharing app are nearing completion. ByteDance began holding discussions with investors in its U.S. operations after the Trump administration threatened to shutter the business, saying that it poses a threat to national security.While some of the terms remain undetermined, here’s what’s known about the deal, based on public statements and people with knowledge of the matter:What We KnowWho’s in and who’s outOracle plans to take a 12.5% stake in a round of financing that would precede an IPOTikTok also said that together, Oracle and Walmart Inc. could end up with as much as 20%The new company, called TikTok Global, will seek a U.S. IPO and raise a pre-IPO round of financingExisting Bytedance investors that could participate in the pre-IPO round include Sequoia Capital, General Altantic and Coatue CapitalA host of other companies made proposals or considered bidding. Microsoft Corp. was rebuffed because it wanted to control all of TikTok in the U.S., a condition that didn’t sit well with BeijingWhat the deal looks likeOracle will be TikTok’s “trusted technology provider,” meaning Oracle will house the entity’s data in its U.S. servers -- a boon to a cloud computing business that has lagged behind those of Amazon.com Inc., Alphabet Inc. and Microsoft. It will also get access to monitor TikTok’s source code and algorithmsWalmart Chief Executive Officer Doug McMillon will sit on Tiktok Global’s board and is discussing a commercial partnership with TikTokTikTok Global will likely be headquartered in Texas and will hire at least 25,000 people, Trump said, without mentioning a timeline for those hiresByteDance would retain a majority stake in TikTok’s assets and control the closely guarded algorithm that determines what clips users seeThe new company will hold an initial public offering in about a yearHow the parties are addressing security concernsOracle will review TikTok’s full source code and updates to make sure there are no back doors that could be used by ByteDance to gather data or spy on the app’s 100 million or so American usersOracle will be able to continue to review the technology as updates come in to make sure there are no new points of access to the dataTikTok was able to convince the U.S. government that TikTok Global would be controlled by American investors by counting the passive stakes of existing shareholders in TikTok’s Chinese parent, people familiar with the matter said. Although Bytedance will retain an 80% stake in the new company, because existing U.S. investors hold a 40% stake in ByteDance, the math works out to 53% ownership by U.S. companies and investorsWhether Trump will get a payoutTikTok Global will use proceeds of the IPO to create a $5 billion education fund“They’re going to be setting up a very large fund,” Trump said Saturday. “That’s their contribution that I’ve been asking for”What We Don’t KnowWhat China thinksThe Chinese government will also have to approve ByteDance’s plans under new restrictions Beijing imposed on the export of artificial intelligence technologies, Bloomberg News reported earlierAs of earlier this week, ByteDance was growing increasingly confident that the proposal would pass muster with Chinese regulators, people familiar with the matter told BloombergEarly reaction from Chinese state media appeared positive. “This scheme is still unfair, but it avoids the worst result that TikTok is shut down or sold to a US company completely,” wrote Hu Xijin, the influential editor in chief of China’s state-owned Global TimesFate of the Commerce Department’s banThe Commerce Department said Saturday it will push a ban back by one week that would bar TikTok from the Apple Inc. and Android app stores, extending the Sept. 20 deadline set by President TrumpFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.