Taiko Aichi Capital Comments on China's ByteDance as They Pursue $60 Billion TikTok Valuation

TOKYO, September 22, 2020 (Newswire.com) - Taiko Aichi Capital, a private wealth management company headquartered in Tokyo, Japan, has today commented on China's ByteDance Ltd as it pursues a valuation of $60 billion for TikTok, with Oracle Corp and Walmart Inc also taking stakes in the short-video app's business to resolve U.S. security concerns.

Anthony Green, Taiko Aichi Capital’s Head of Capital Markets, commented: "In order to comply with U.S. national security requirements, Oracle confirmed it will take a 12.5% stake in TikTok Global and store all its U.S. user data in its cloud. Retail giant Walmart will also take a 7.5% stake.”

The two companies will pay a collective $12 billion for their stakes if they agree on a $60 billion asking price, according to analysts at Taiko Aichi Capital.

The final valuation is yet to be confirmed, as both companies continue to work out the equity structure and data security measures.

Thomas Henderson, Taiko Aichi Capital’s Director of EMEA Wealth, commented: “On Saturday, President Donald Trump endorsed the deal in principle and said he would allow TikTok to continue to operate in the United States, even though it clashed with his previous demand for China's ByteDance to divest the video app.”

ByteDance was racing to avoid a TikTok crackdown after the U.S. Commerce Department said on Friday that it would ban all new downloads and updates to the app from Sunday.

U.S. authorities had shared concern that the personal information of as many as 100 million Americans using the app was being relayed to China's Communist Party government.​

ByteDance, the Beijing-based parent firm, is the world's most valuable private start-up at $140 billion. The TikTok Global deal does not include the app's Chinese twin, Douyin, which has become another major success in its own right.

About Taiko Aichi Capital

Established in 2007, Taiko Aichi Capital 太鼓愛知県資本 is an independent, boutique, private wealth management and advisory company with headquarters located in Tokyo, Japan. 

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Source: Taiko Aichi Capital