ByteDance Sells TikTok US Operations for $14 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Source: Benzinga
- Deal Finalization: ByteDance has signed an agreement to sell TikTok's U.S. operations to a consortium led by American entities, with the transaction expected to close this week, marking a tentative end to nearly six years of legal and political disputes.
- Ownership Structure Shift: The newly formed U.S. TikTok entity will be over 80% owned by U.S. and other non-Chinese investors, reducing ByteDance's stake to just under 20%, thereby addressing key national security concerns raised by the U.S. government.
- Investor Composition: The consortium includes software giant Oracle, private equity firm Silver Lake, and state-owned Emirati investment firm MGX, each holding about 15%, along with Michael Dell's personal investment vehicle and several other investment firms.
- Algorithm Ownership: While ByteDance sells its U.S. operations, it retains ownership of the core algorithm and will license it to the new U.S. entity, ensuring independence in data protection and content moderation.
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Analyst Views on DELL
Wall Street analysts forecast DELL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DELL is 164.85 USD with a low forecast of 113.00 USD and a high forecast of 180.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
11 Buy
3 Hold
1 Sell
Moderate Buy
Current: 117.320
Low
113.00
Averages
164.85
High
180.00
Current: 117.320
Low
113.00
Averages
164.85
High
180.00
About DELL
Dell Technologies Inc. is engaged in designing, developing, manufacturing, marketing, selling, and supporting a wide range of comprehensive and integrated solutions, products, and services. The Company operates through two segments: Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). Its ISG segment enables the Company’s customer’s digital transformation with solutions that address artificial intelligence (AI), machine learning, data analytics, and multi cloud environments. Its comprehensive storage portfolio includes modern and traditional storage solutions, including all-flash arrays, scale-out file, object platforms, hyper-converged infrastructure, and software-defined storage. Its CSG segment offers branded personal computers (PCs) including notebooks, desktops, and workstations and branded peripherals that include displays, docking stations, keyboards, mice, and webcam and audio devices, as well as third-party software and peripherals.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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