TikTok is close to announcing a deal to sell its US operations and might do so in the coming days, said people who are familiar with the matter. CEO Kevin Mayer stepped down on Thursday stating that the role he signed up for is not going to remain the same given the recent developments.
According to CNBC, Mayer was supposed to announce his resignation along with the sale agreement for TikTok’s US operations next week but pushed it up because news of him leaving was ‘leaked’ to Financial Times. Vanessa Pappas will be taking over as interim head of TikTok’s US ops.
Mayer leaving is clear indication that TikTok’s US operations are on the verge of being sold. So far, Microsoft and Walmart have partnered up to offer a deal that’s better than what Oracle is offering and since all the bids have come in before the deadline, one can expect talks to go through soon.
ByteDance is also in talks to sell TikTok’s Canadian, Australian and New Zealand operations after the Trump administration forced the company to divest its assets on national security grounds.
In a separate executive order TikTok has sued the US government for threatening to ban the app next month and also for trying to shut down in-app transactions.
TikTok is currently discussing bids from Oracle and Walmart and Microsoft. CNBC had earlier reported that Walmart was in talks with SoftBank to make a joint bid for TikTok but has now partnered with Microsoft instead.
Walmart issued a statement to CNBC where they stated that they believe a potential relationship with TikTok US in partnership with Microsoft could add a key functionality and provide Walmart an opportunity to reach out to omnichannel customers and grow their third-party marketplace and advertising business.
Following this statement, Walmart’s shares rose by more than 3%.
TikTok is likely to sell its US, Canadian, Australian and New Zealand operations for a valuation in the $20 billion to $30 billion range, but a price still hasn’t been decided, sources said.
