TikTok owner seeking $ 60 billion valuation in US deal

China's ByteDance Ltd is seeking a valuation of $ 60 billion for TikTok as Oracle Corp and Walmart Inc take stakes in the short- video app's business to address US security concerns, according to a person familiar with the matter.

Oracle and Walmart have rights to buy 12.5 per cent and 7.5 per cent, respectively, of a newly established TikTok Global under an agreement that won the approval of President Donald Trump, the person said, asking not to be named about discussing private negotiations. The two companies would pay a combined $ 12 billion for their stakes if they agree to that asking price.

The final valuation price

had not been set as the parties worked out the equity structure and measures for data security, the person said.

ByteDance was pressured into a deal for TikTok when Trump threatened to ban the app in the US over national security concerns. After Microsoft Corp made a proposal for a full buyout of the service, ByteDance instead turned to Oracle's offering in which the Chinese parent will maintain a solid majority stake.

"I approved the deal in concept," Trump told reporters on Saturday as he left the White House for a campaign rally in Fayetteville, North Carolina. "If they get it done, that's great. If they don't, that's OK too."

ByteDance and Oracle representatives didn't immediately respond to requests for comment.

ByteDance may end up owning as much as 80 per cent of TikTok Global, which would include the app's operations in the US and the rest of the world excluding China.

Under the current proposal, there will be five seats on the board of TikTok Global. Walmart's CEO Doug McMillon will become a director, the retailer said. — Bloomberg