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<blockquote data-quote="lawless" data-source="post: 42756" data-attributes="member: 8653"><p>When the company, A, decides to acquire a target company, B, it can do so by either asset acquisition or stock acquisition. Asset acquisition is fairly simply A can take the desired assets of the target company and B can run on its own without any loss of control to its structure. So, for example, if TikTok sold its algorithm to Microsoft, the threat to national security would still exist because people would still be using the app, and that data would still be &quot;sold&quot; to China. Stock or share acquisition is basically buying the shares from existing equity shareholders (the shareholders that have decision making powers on a company's management). It's up to A whether it wants a 50% stake in B, or share the ownership with another company, C, where C takes the remaining 50%, as long as the existing equity shareholders are willing to sell their shares. Walmart/Oracle/TikTok is a merger because they are creating an entirely new entity in which Walmart<a href="https://www.cnbc.com/2020/09/19/trump-says-he-has-approved-tiktok-oracle-deal-in-concept.html" target="_blank"> has 7.5% s</a>take and Oracle has a 12.5% stake whereas Bytedance holds 80% of the stake. In short, Walmart has acquired (literally speaking) a very small part of TikTok. By majority, ByteDance is still somewhat the owner of TikTok Global.</p></blockquote><p></p>

[QUOTE="lawless, post: 42756, member: 8653"] When the company, A, decides to acquire a target company, B, it can do so by either asset acquisition or stock acquisition. Asset acquisition is fairly simply A can take the desired assets of the target company and B can run on its own without any loss of control to its structure. So, for example, if TikTok sold its algorithm to Microsoft, the threat to national security would still exist because people would still be using the app, and that data would still be "sold" to China. Stock or share acquisition is basically buying the shares from existing equity shareholders (the shareholders that have decision making powers on a company's management). It's up to A whether it wants a 50% stake in B, or share the ownership with another company, C, where C takes the remaining 50%, as long as the existing equity shareholders are willing to sell their shares. Walmart/Oracle/TikTok is a merger because they are creating an entirely new entity in which Walmart[URL='https://www.cnbc.com/2020/09/19/trump-says-he-has-approved-tiktok-oracle-deal-in-concept.html'] has 7.5% s[/URL]take and Oracle has a 12.5% stake whereas Bytedance holds 80% of the stake. In short, Walmart has acquired (literally speaking) a very small part of TikTok. By majority, ByteDance is still somewhat the owner of TikTok Global. [/QUOTE]

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