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The offers for TikTok have arrived and ByteDance seems to have realized that “the writing is on the wall,” meaning a sale may be the only option with an executive order from US President Donald Trump, according to Wedbush.
The TikTok Sales Analyst: Daniel Ives said Microsoft Corporation (NASDAQ: MSFT) and Walmart Inc (NYSE: WMT) have a 90% chance of winning the trade.
The takeaways from the TikTok sale: While deal negotiations are likely complex, given several technology and data privacy issues to be resolved, Microsoft appears to be the “world’s one true white knight,” Ives said in a Friday memo. (See his record here.)
The giants of FAANG technology – Facebook, Inc. (NASDAQ: FB), Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc. (ASDAQ: AAPL), Netflix Inc (NASDAQ: NFLX) and Google parent Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) – are grappling with regulatory concerns, the analyst said.
Microsoft, not Oracle Corporation (NYSE: ORCL), appears to be the only pillar of American technology “with the treasure chest, infrastructure, and distribution to make a deal like this,” given the complex politics involved and the high price tag, has he declared.
Microsoft’s decision to buy TikTok is a good one, as its valuation could rise from $ 35 billion to $ 40 billion today to almost $ 200 billion in a few years “if we navigate the right way,” Ives said.
Walmart came into Microsoft’s offering late, but it’s the “missing piece of the puzzle,” given TikTok’s potential e-commerce and advertising capabilities, the analyst said. This could cement Microsoft’s victory in the acquisition process, he said.
Related links:
Kevin Mayer, CEO of TikTok, resigns, says US pressure for sale led to decision
TikTok sale seems imminent as Microsoft partners with Walmart, Oracle finalizes offer
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