The Last ByteDance

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What's going on?

Chinese giant ByteDance which just missed the deadline to sell TikToks US operations has been told to boogie: the US announced a ban of the social media app on Friday.

What does this mean?

The ban which also applies to Tencent-owned chat app WeChat comes in two parts. From next Sunday, Americans wont be able to download the app, get software updates, or make any in-app transactions. And from November 12th, the app will be outlawed altogether though TikTok might get back in Americas good graces if it agrees a sale by then.



Speaking of which, Oracle alongside retail giant Walmart and a handful of private investors overtook Microsoft last week to become the favorite to take on a stake in TikTok. Nothing can be made official till both the US and Chinese governments sign off, mind you. The US has agreed in principle, while China wants to be sure TikTok-parent ByteDance hangs on to its proprietary algorithms.

Why should I care?

For markets: Betting on tomorrow.


When Microsoft and Oracle first entered the fray, investors initially bought into them both. But now that the most likely deal structure will leave Oracle just a part-owner of TikTok, those investors potentially concerned by a smaller share of profit initially ditched its shares on Friday. Still, TikToks mooted plan to list on the stock market within a year quickly brought them back: the video apps likely worth at least $50 billion, which could mean a potential windfall for Oracle and its shareholders.



The bigger picture: If its good enough for soybeans


In recent years, the US-China trade war has escalated from agriculture to companies. And investors seem to think this strategy will pay off in at least one way: American social media stocks Facebook, Twitter and Snaps rose on Friday, likely because theyll benefit from less TikToking.

Originally posted as part of the Finimize daily email.

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