Walmart Says It Has Teamed up With Microsoft on TikTok Bid

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Walmart Says It Has Teamed up With Microsoft on TikTok Bid


The retail giant confirmed to CNBC that it's interested in buying the tech company. 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, sources say. It has not yet chosen a buyer, but could announce the deal in coming days, 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+.

 

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[DEAD7]

More context:

Microsoft's acquisition talks with TikTok and its Chinese parent company ByteDance "ballooned" this summer after President Donald Trump intervened, according to a report from The New York Times, citing people familiar with the situation. ByteDance is being forced to sell TikTok's U.S. business by the Trump administration, which says the app's current ties to China make it a national security threat. An executive order signed by Trump on Aug. 6 means a sale must go through before Sept. 15. However, TikTok sued the U.S. government on Monday, alleging it was deprived of due process. The lawsuit could delay the ban, giving TikTok more time to get a better deal for the sale.

When the deal talks began, Microsoft is said to have been reluctant to do any kind of large TikTok acquisition, due in part to the rising tensions between the U.S. and China, according to the Times report. However, a minority stake in the wildly popular video sharing app was viewed positively as it may lead to TikTok ditching Google Cloud, which it currently uses, and signing up to Microsoft Azure, instantly making it one of Microsoft's largest cloud customers. TikTok could also be integrated with Microsoft's $7 billion advertising business. Microsoft issued a statement on Aug. 2 about its pursuit to buy TikTok's U.S. business. However, on Aug, 3, Trump said he'd rather Microsoft, valued at $1.6 trillion, purchase the app that is used by 100 million Americans in its entirety. "I think buying 30% is complicated," Trump told reporters in the Cabinet Room at the White House. There are now several other bidders competing with Microsoft, with the main one being enterprise software firm Oracle. Netflix and Twitter have also been contacted by bankers and investors, but it's not clear if they're interested, according to the Times. In any case, deal talks between the parties have "morphed into a big, messy, political soap opera," according to the report.


TikTok CEO Kevin Mayer has left the Chinese-owned video app firm just three months since joining, and only days since the company sued the administration of U.S. President Donald Trump over an executive order effectively banning it in the United States. He will be replaced by U.S. General Manager Vanessa Pappas on an interim basis, TikTok said in a statement. From a report:
The resignation comes at a tricky time for super-fast growing TikTok as it tries to persuade both the United States and India that it is not a security threat, while at the same time holding discussions with prospective buyers following a second U.S. order demanding the sale of its U.S. operations. Mayer was Walt Disney's top streaming executive before becoming chief executive officer of TikTok and chief operating officer of parent ByteDance on June 1. "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," Mayer said in a letter to employees.

 

[jj23]

Walmart tech breh. EVERYTHING made in China.

 

[The Bilingual Gringo]

I feel like they're just buying data at this point.

 

[GnauzBookOfRhymes]

I bet trump is getting a big kickback from bytedance

 

[Kyle C. Barker]

I feel like they're just buying data at this point.

At first I thought this was a weirder partnership than Jerry Falwell and his pool boy but the data play makes it make sense

 

[The Bilingual Gringo]

At first I thought this was a weirder partnership than Jerry Falwell and his pool boy but the data play makes it make sense

If that app has scraped as much data as what's been said, it's not a terrible play. But a lot of that could have been traded/sold anyway. Data is king.