Walmart has confirmed it’s teaming up with Microsoft in a bid for ByteDance’s TikTok service.
On August 14, U.S. President Donald Trump ordered China-based ByteDance to divest the U.S. operations of its video-sharing app TikTok within 90 days, the latest effort to ramp up pressure on the company over U.S. national security concerns. “There is credible evidence that leads me to believe that ByteDance… might take action that threatens to impair the national security of the United States,” Trump said in the order.
As a result, TikTok is nearing an agreement to sell its U.S., Canadian, Australian and New Zealand operations in a deal that’s likely to be in the $20 billion to $30 billion range.
Walmart said it’s teaming up with Microsoft in a bid for TikTok. The retail giant confirmed to CNBC that it’s interested in buying the popular short-form video application.
TikTok’s Beijing-based parent company, ByteDance, is nearing an agreement to sell its U.S., Canadian, Australian and New Zealand operations in a deal that’s likely to be in the $20 billion to $30 billion range, sources say. It has not yet chosen a buyer, but could announce the deal in coming days, the sources say.
With Walmart’s confirmation, it joins several others bidding on the tech company, including Oracle.
Walmart is pursuing the acquisition at a time when it’s trying to better compete with Amazon. It plans to launch a membership program, called Walmart+, soon. The subscription-based service is the retailer’s answer to Amazon Prime, which includes original TV shows and movies.
In a statement, the big-box retailer said TikTok’s integration of e-commerce and advertising “is a clear benefit to creators and users in those markets.” It did not say how it would use TikTok or whether it would be part of Walmart+.
MacDailyNews Take: Walmart + Microsoft. Now there’s a marriage made in hell.
Walmart + Microsoft = Myspace.
— MacDailyNews (@MacDailyNews) August 27, 2020