Made in China- TikTok Global between a deal and the precipice

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Made in China- TikTok Global between a deal and the precipice

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Made in China- TikTok Global between a deal and the precipice
  • ByteDance is rushing to sell a 20% stake in TikTok Global to Oracle and Walmart at an enterprise value of $60 billion. TikTok otherwise faces a ban in the US on 12 November, subject to legal challenges
  • The sale hinges on ByteDance obtaining approval from China to export TikTok’s core technologies. China updated its export control rules to include algorithms (and AI), entrenching a tech cold war with the West
  •  TikTok has confounded regulatory woes in India and the US, and renewed competition from US tech, to post dizzying user growth in every major internet region where it is available, casting off its image as a niche youth product and entering the mainstream

Contents

Introduction

A US deal with Chinese characteristics

No end in sight for the US/China tech war

TikTok’s future remains uncertain

List of charts/tables

Figure 1: TikTok weekly downloads in the US, 2019-2020 (m)

Figure 2: Oracle revenue and margin by segment, FY fiscal 2020

Figure 3: Shoppable YouTube (left) and Instagram Checkout (right) ad formats

Figure 4: Walmart marketplace sellers (000)

Figure 5: Tencent selected major foreign investments as of October 2020

Figure 6: Apple revenues by major geography, nine months to June 2020 ($bn)