Published 12:45 IST, August 28th 2020
Walmart joins hands with Microsoft in bid to buy TikTok; what's in it for the retailer?
In a new development on TikTok, retail giant Walmart said it will join hands with Microsoft in its bid to acquire the Chinese owned app
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In a new development over the TikTok buyout by Microsoft in the US, retail giant Walmart said it will join hands with Microsoft to acquire the Chinese owned app. The short video making app has been caught in the eye of a storm amid claims that it is a potential national security threat and is accused of leaking information to the Chinese Communist government.
US President Donald Trump in mid-August said the company has three months to divest itself of any assets used to support the popular TikTok app in the United States. Trump had ordered ByteDance, the parent company of TikTok, to either sell or spin off its American branch within 90 days. This occurred after Trump signed a separate executive order banning American transactions with WeChat and TikTok’s parent company ByteDance in 45 days.
TikTok has been bearing the brunt of a diplomatic storm from several quarters and the parent company ByteDance is looking to sell its American, Canadian, Australian and New Zealand operations.
Earlier Microsoft was in talks of the acquisition of TikTok, now teaming up with Walmart. Oracle corp is also in the race to acquire the short video making app.
What is in it for Walmart?
Walmart, a retail giant, is entering the market of subscription-based OTT platforms with its offering called 'Walmart +', which is said to compete with Amazon Prime.
Walmart in a statement has said TikTok’s integration of e-commerce and advertising “is a clear benefit to creators and users in those markets.” However, it
“We believe a potential relationship with TikTok US in partnership with Microsoft could add this key functionality and provide Walmart with an important way for us to reach and serve omnichannel customers as well as grow our third-party marketplace and advertising businesses,” it said.
“We are confident that a Walmart and Microsoft partnership would meet both the expectations of US TikTok users while satisfying the concerns of US government regulators.”
12:45 IST, August 28th 2020