Please ensure Javascript is enabled for purposes of website accessibility

TikTok CEO Steps Down

By Eric Volkman – Updated Aug 27, 2020 at 4:25PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

News of Kevin Mayer's departure comes on a day of potentially major developments for the beleaguered company.

TikTok CEO Kevin Mayer resigned on Wednesday. Mayer, who also served as chief operating officer of the company's China-based owner ByteDance, announced his departure in a note to employees seen by The New York Times.

The Times quoted him as writing: "In recent weeks, as the political environment has sharply changed, I have done significant reflection on what the corporate structural changes will require, and what it means for the global role I signed up for. Against this backdrop, and as we expect to reach a resolution very soon, it is with a heavy heart that I wanted to let you all know that I have decided to leave the company."

Businessman exiting his former place of employment, carrying a box of personal belongings.

Image source: Getty Images.

A report published Thursday in the Financial Times, citing a TikTok internal letter, said that its general manager, Vanessa Pappas, would become interim CEO.

ByteDance and TikTok are currently locked in a battle with the Trump administration. On Aug. 6, the administration issued an executive order barring U.S. companies and individuals from doing business with ByteDance if it does not divest TikTok within 45 days. TikTok sued the administration over the order; the case is pending.

The wildly popular TikTok has been the focus of scrutiny and criticism over its alleged harvesting of user data, which some say can be used for nefarious purposes by the Chinese government. ByteDance has been accused of having close ties with that country's officials.

In another development, Walmart (WMT -2.50%) has joined Microsoft (MSFT -1.27%) in its bid for TikTok, the giant retailer confirmed Thursday following media reports on the subject.

The Microsoft-Walmart team could end up paying handsomely, because TikTok would likely sell for $20 billion to $30 billion, according to a CNBC report on Thursday, citing sources familiar with the situation.

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Microsoft and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Walmart Stock Quote
Walmart
WMT
$130.06 (-2.50%) $-3.33
Microsoft Corporation Stock Quote
Microsoft Corporation
MSFT
$237.92 (-1.27%) $-3.06

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
329%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.