The Sale of TikTok’s US Business Is on Hold

Plans for Sale to Walmart and Oracle Have Been Shelved

TikTok, the popular video sharing app, was preparing to sell its US operations to Oracle (ORCL) and Walmart (WMT). Now these discussions are on hold.

TikTok is owned by the parent company ByteDance, and allows users to create, share, and watch short video clips. It is powered by sophisticated AI which delivers users personalized content. This technology has led the app to surge in popularity. According to recent data, TikTok has 689 million monthly users internationally and 100 million monthly users in the US. It is valued at about $50 billion.

A Quick Review

TikTok has been caught in the crossfire as tensions between Washington and Beijing rise. In the fall of 2020, former president Trump signed an executive order labeling TikTok as a national security threat. Then, with another executive order, the former president threatened to ban the app in the US unless it sold its US operations to a domestic company. The Trump administration was concerned that the Chinese government would have access to Americans’ data collected via TikTok, and that this would pose security risks.

A number of US buyers scrambled to be part of the TikTok deal last fall. Microsoft (MSFT) was looking like a front runner, but ultimately Oracle and Walmart came out ahead. Now, though a sale of TikTok’s US business could still take place, it will likely look different than the agreement proposed in September.

The Biden Administration’s Plans

The Biden administration is conducting a review of potential security risks related to China-based tech companies. The plan to require TikTok to sell its US operations has been shelved for the time being.

White House Press Secretary Jen Psaki said yesterday, “I will note, broadly speaking, that we are comprehensively evaluating the risks to US data including from TikTok and will address them in a decisive and effective fashion.” TikTok’s many users, as well as leaders in the US social media landscape, will be anxious to see how the Biden administration’s decisions impact TikTok’s future in the US.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT SoFi SoFi helps people achieve financial independence to realize their ambitions. Our products for borrowing, saving, spending, investing, and protecting give our more than one million members fast access to tools to get their money right. SoFi membership comes with the key essentials for getting ahead, including career advisors and connection to a thriving community of like-minded, ambitious people. For more information, visit Want an easy and convenient way to manage your financial life? Get the SoFi app. For iOS and Android.

TLS 1.2 Encrypted
Equal Housing Lender