Stocks of TikTok US suitors hit by fears of blocks by China

Platform Industry: US and China Relations and Politics

Shares of TikTok US suitors Microsoft, Oracle and Walmart fell on Monday trading following Communist China’s move to limit some tech exports spurred worries Beijing might block any bargain to get the movie app’s US assets.

China’s new rules about technician exports mean ByteDance’s selling of TikTok US operations may require approval from Beijing, a Chinese commerce specialist told state media on Sunday, a necessity that could reevaluate the driven and politically charged divestment.

Shares of Walmart, Microsoft and Oracle dropped between 1 percent and 2.5 percent in morning trading.

All three pared some pre-market losses after CNBC reported earlier from the day that TikTok has picked a lien and a deal could be announced as early as Tuesday.

TikTok leadership stated in a memo to employees earlier last week the company was “moving quickly to find resolutions to the issues that we face globally, particularly in the US and India”.

China, however, late on Friday revised a list of technology banned or restricted for export for the first time in 12 years. Cui Fan, a professor of international trade at the University of International Business and Economics in Beijing, said the changes could apply to TikTok.

Related Article:
ByteDance founder to step down as CEO, hand over to college roommate

“That probably throws a wrinkle in it, but I don’t think that causes the deal not to get done,” Edward Jones analyst Brian Yarbrough explained.

The team at Platform Executive hope you have enjoyed the ‘Stocks of TikTok US suitors hit by fears of blocks by China‘ article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Munsif Vengattil and Nivedita Balu in Bengaluru. Editing by Patrick Graham and Shinjini Ganguli.

To stay on top of the latest developments across the platform economy and gain access to our problem-solving tools and content sets, you can become a member for just $7 per month.

Share this article