Tiktoks monthly live users in the United States exceed 100 million. How much are American companies willing to bid

category:Internet
 Tiktoks monthly live users in the United States exceed 100 million. How much are American companies willing to bid


Chen Chen, editor

The ultimate buyer of tiktoks US business is about to surface. Kevin Mayer, chief executive of tiktok, resigned because he was excluded from tiktoks deal negotiations with Microsoft and Oracle, according to people familiar with the matter, according to global.com, citing foreign media sources. In addition, several sources revealed to the media that Mayers resignation indicated that tiktok was likely to conclude a sale deal with Microsoft in the next 48 hours.

Microsoft has been regarded as the most likely potential buyer for tiktoks U.S. business since the announcement of the acquisition on August 1. The New York Times reported that Microsoft had already held talks with byte hop this summer on acquiring a small stake and becoming a customer of Microsofts azure cloud computing service. Then Trumps threat and ban expanded the scope of negotiations between the two sides.

Now Microsoft has a new partner in the acquisition of tiktok. On August 27 local time, Wal Mart, an American retail giant, confirmed that it would join hands with Microsoft to acquire tiktok, and the integration of tiktoks e-commerce and advertising functions has become the focus of Wal Marts attention.

Before opting for a joint acquisition with Microsoft in recent days, Wal Mart was a member of a consortium led by Softbank CEO Marcelo Clare, who wanted to co acquire tiktok with Googles parent company alphabet. The consortium initially planned for Wal Mart to act as the main acquirer, with Softbank and alphabet acquiring a minority stake in tiktok. There are also two or three other companies involved and are expected to acquire a minority stake in tiktok.

Currently, the biggest competitor Microsoft and Wal Mart face is Oracle Corp. General Atlantic and Sequoia Capital, major investors in byte hopping, are the main drivers behind Oracles bid for tiktoks US business. Moreover, Oracle has gained the public support of U.S. President trump. On August 19 local time, trump said oracle was a good company to take over tiktoks US business.

The wrap quoted people familiar with the matter as saying Oracle had quoted a price for byte skipping. The proposed deal will include $10 billion in cash and $10 billion in Oracle stock, and 50% of tiktoks annual profit will be returned in bytes within two years.

For Oracles attempt to acquire tiktok, one view is that tiktok can save its troubled data cloud (ODC) business, and tiktoks user behavior data can be used to supplement Oracles marketing services.

According to media reports, tiktok asked bidders to pay $30 billion to buy its US business, and the final buyer and price have not been determined. The media estimates that tiktoks us, Canada, Australia and New Zealands packaged deals are between $20 billion and $30 billion.

In addition to Oracle, Microsoft and Wal Mart, twitter, Google, apple, Netflix, Softbank and other companies have successively disclosed the possibility of acquiring tiktok since August. Among them, Twitter has carried out preliminary negotiations with byte jump, and apple, Google and Netflix have all denied the acquisition rumors.

For byte hopping, the sale of tiktoks U.S. business may yield substantial cash returns, but it also means the loss of an important business and a huge market.

The US is the second largest market in TikTok (and the third largest market in tiktok and TikTok). In the first quarter of 2020, tiktok is the most downloaded non Game App in the U.S. market, with a cumulative download volume of more than 22 million times. In the second quarter, tiktok had more than 25 million downloads in the United States, ranking second in the U.S. market after zoom, an online conference app.

The number of active users in the United States and around the world was disclosed for the first time in a lawsuit filed a few days ago. According to the document, about 11 million Americans used tiktok in January 2018, and its monthly number of active users has increased by nearly 800% since then.

Tiktok said earlier this month that it now has more than 100 million users a month in the United States. In addition, tiktok had nearly 700 million monthly active users worldwide in July. Based on this calculation, tiktok will lose about 14.5% of its global monthly customers by selling its US business.