For TikTok, Analyst Says 'Writing Is On The Wall,' Sale Imminent

Loading...
Loading...

The bids for TikTok are in, and ByteDance seems to have realized that "the writing is on the wall," meaning that a sale may be the only option with an executive order looming from U.S. President Donald Trump, according to Wedbush.

The TikTok Sale Analyst: Daniel Ives said Microsoft Corporation MSFT and Walmart Inc WMT have a 90% probability of winning the deal.

The TikTok Sale Takeaways: Although deal negotiations are likely to complex, given several technology and data privacy issues to be addressed, Microsoft seems to be the “only true white knight around,” Ives said in a Friday note. (See his track record here.)

The FAANG tech giants — Facebook, Inc. FB, Amazon.com, Inc. AMZN, Apple Inc. AAPL, Netflix Inc NFLX and Google parent Alphabet Inc GOOGL GOOG — are caught up with regulatory concerns, the analyst said.  

Microsoft, and not Oracle Corporation ORCL, seems to be the only U.S. tech stalwart “with the treasure chest, infrastructure, and distribution to get a deal like this done,” given the complex politics involved and the high price tag, he said. 

Microsoft’s decision to purchase TikTok is a good one, as its valuation could grow from the current $35-$40 billion to almost $200 billion in a few years “if navigated the right way,” Ives said. 

Walmart entered Microsoft’s bid late, but is the "missing piece in the puzzle," given TikTok’s potential ecommerce and advertising capabilities, the analyst said. This could cement Microsoft’s victory in the acquisition process, he said. 

Related Links: 

TikTok CEO Kevin Mayer Quits, Says US Push For A Sale Drove Decision

TikTok Sale Looks Imminent As Microsoft Teams With Walmart, Oracle Finalizes Bid

Loading...
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorM&APoliticsReiterationAnalyst RatingsTechGeneralDaniel IvesWedbush
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...