Oracle and Walmart would pay a combined $12 billion as they take stakes in the short-video app's business to address US security concerns, Bloomberg reports.

US had expressed concern the personal data of as many as 100 million Americans that use the app were being passed on to Chinese government.
US had expressed concern the personal data of as many as 100 million Americans that use the app were being passed on to Chinese government. (Reuters)

China's ByteDance Ltd has sought a valuation of $60 billion for TikTok as Oracle Corp and Walmart Inc take stakes in the short-video app's business to address US security concerns, Bloomberg News reported on Sunday, citing an unnamed person familiar with the matter.

The final valuation had not been set as the companies worked out the equity structure and measures for data security, the report said.

Oracle will take a 12.5 percent stake in TikTok Global and store all its US user data in its cloud to comply with US national security requirements, the companies said on Saturday. 

Retail giant Walmart said it would take a 7.5 percent stake.

The two companies would pay a combined $12 billion for their stakes if they agree to a $60 billion asking price, Bloomberg reported. 

ByteDance, TikTok, Oracle, and Walmart did not immediately respond to requests for comment on the report.

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Trump supports deal

US President Donald Trump on Saturday said that he supported a deal in principle would allow TikTok to continue to operate in the United States, even as it appeared to conflict with his earlier executive order for China's ByteDance to divest the video app.

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

US officials had expressed concern that the personal data of as many as 100 million Americans that use the app were being passed on to China's Communist Party government.

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Appstore ban delayed 

The US Commerce Department announced a one-week delay until September 27 in an order issued on Friday that was set to require Apple Inc and Alphabet Inc's Google to remove the TikTok app for download.

The order said in "light of recent positive developments" and at US President Trump's direction, the order will be delayed until September 27 at 11:59 p.m. A person briefed on the matter said the delay gives TikTok owner ByteDance, Oracle, and Walmart time to finalize the deal to create a new company called TikTok Global to handle TikTok's US operations.

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Source: TRTWorld and agencies