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TikTok CEO Kevin Mayer steps down after 3 months

After just three months at the company, Tik Tok CEO Kevin Mayer is stepping down. Yahoo Finance's Tech Editor joins Yahoo Finance’s The First Trade with Alexis Christoforous and Brian Sozzi to discuss this and much more.

Video Transcript

BRIAN SOZZI: TikTok CEO Kevin Mayer announced that he is leaving the helm of the company after just three months on the gig. Yahoo Finance tech editor Dan Howley joins us with the details. Dan, what's the latest here?

DAN HOWLEY: Yeah, the latest is now we're getting reports, this is from CNBC, that Walmart was actually interested in teaming up with SoftBank to purchase TikTok. But they--


DAN HOWLEY: --ended up not being a, you know, I guess, decent bid, just because they don't have the backbone and the cloud infrastructure that a company like Microsoft or Oracle might have. There are additional reports saying that Microsoft could close a deal very soon. And that's something, you know, Kevin Mayer had kind of pushed at or pointed to in his resignation letter saying that they expect some kind of resolution to come quickly.

Not specifically mentioning Microsoft or Oracle either way, but saying that there could be some resolution coming quickly. And then there are additional reports out there that Mayer is stepping aside because he wasn't part of the conversations in which company would snap up the different pieces of TikTok that are being separated from the main branch of TikTok. Those are the US, Canadian, Australian, and New Zealand operations of the company.

It's really just an interesting and ongoing story. And they only have until September before that executive order that's supposed to ban TikTok in the US or from doing operations in the US goes into effect.

ALEXIS CHRISTOFOROUS: Who do you think has the better shot at this point, Dan, of getting these US operations? Is it looking more and more like Microsoft could swoop in here and be the hero?

DAN HOWLEY: Yeah, it's always seemed to me that Microsoft was the one that made the most sense. Apparently, though, some people were really going hard on Oracle. Sequoia Capital is-- was backing Oracle, and they have a stake in ByteDance. So obviously, they would want to continue to hold onto that as it moved through into the next phase.

But really, Microsoft just seemed to be the most realistic. They have existing consumer facing business, they have some experience in social media with LinkedIn, which they've managed to make profitable underneath them. So it just seems to me that that would be the most logical conclusion to this.

They were the ones that were originally out front in discussions. They've obviously had a relationship with the Trump administration. Although, Oracle does have a close relationship with Trump's administration. Larry Ellison has donated to him. And, you know, so they obviously have that going on. But, you know, it just feels as though Microsoft is the right fit over any of these other companies.