ByteDance could still keep 50% profit after selling majority share in TikTok US deal | 5 points
According to a report referring to Bloomberg sources, the video sharing application Tiktok’s Chinese parent ByTedance, the platform’s majority share of the United States operations of the United States can maintain about 50 percent of the abdomen even after selling to American investors.
Sources, under the leadership of US President Donald Trump, will maintain a share in proportion to all revenues obtained from presenting Bytectance’s algorithm to the US organization and the abdominal stock. The Chinese technology company, including all aspects, said that even after being captured by American owners, the US unit could get approximately 50 percent or more of its profit.
In the report, Bayta, Tiktok and the White House did not respond to the queries on the subject, he added.
Trump reaches an agreement with Bayta in Tiktok: 5 Basic important points
- License fee: According to the report, in the current proposal, the profit sharing agreement pays a “heavy ıl license fee for the use of Tiktok US algorithm. This is the adhesive point, as it loans this registered algorithm to addicize the platform.
Sources, according to the current offer, the right to receive 20 percent for the rights of increased income, he said. For example, 20 billion dollars income, the Bayta can be $ 4 billion.
- Stock accident to be paid: In addition, the Bayta will receive approximately 20 percent of the remaining income in accordance with the remaining stock.
In particular, Oracle Corporation, Silver Lake Management and Abu Dhabi -based MGX and existing investors Tiktok would share an American consortium, the remaining profit.
- The valuation of the agreement: US Vice President JD Vance said that on September 25, the US-Titok agreement would be about $ 14 billion-well below what the analyst stands between $ 35-40 billion. However, he clarified that the amount of the buyers would determine the amount paid.
It is unclear whether a final agreement has been reached between the US consortium and bays.
- Experts say the amount of agreement swims ‘worthless’: In the report, such a gap is between the conflict of the profit distribution of the Tiktok agreement and the value of the US business and the price tag rising by the Trump administration.
Ashwin Binwani, the founder of Alpha Binwani Capital and did not hold his stakes of Turkey, said that the bid of $ 14 billion to BB could be the lowest valuable technology acquisition of the decade. He estimated that the floating figure reflects one -third of Tiktok’s real value. “With every major financial metric and peer comparison, this price tag seems to be wrong with reality.”
- No approval about the situation: Last week, when Donald Trump talked about the agreement with Chinese President Xi Jinping, the US side said that both of them have reached an agreement for sales. However, the Chinese authorities did not confirm that the agreement was final.
(With Bloomberg)
