Walmart has confirmed this week that it is teaming up with tech giant Microsoft in an attempt to purchase the Chinese-owned social media platform TikTok.
CNBC reports that Walmart has revealed that it is teaming up with tech giant Microsoft in a bid to purchase TikTok. Walmart shares hit a 52-week high of $139.35 on Thursday following the announcement.
TIkTok’s Chinese parent company, ByteDance, is reportedly getting to close to an agreement to sell it’s U.S., Canadian, Australian, and New Zealand operations in a deal that is expected to be in the $20 – $30 billion range. ByteDance has yet to choose a buyer but could announce a deal in the coming days according to sources.
Joining Microsoft’s bid, Walmart is now competing with another U.S. tech giant, Oracle, to buy the popular social media app. A Walmart spokesperson declined to outline how Microsoft and Walmart would split ownership of TikTok if their bid is successful. Walmart is pursuing the acquisition at a time when the retailer is attempting to better compete with Amazon.
Walmart is reportedly launching its own membership program called Walmart+ soon, essentially creating its own version of Amazon Prime which offers faster shipping times and video-on-demand services to Amazon customers.
In a statement, Walmart said that TikTok’s integration of e-commerce and advertising “is a clear benefit to creators and users in those markets.” In a full statement, Walmart said:
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
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.
Daniel Ives, the managing director and technology analyst at Wedbush Securities, described TikTok as a “huge shot in the arm” for Walmart’s e-commerce business. Ives stated: “When you think right now about going up against the 800-pound gorilla, Amazon, obviously they’ve been behind the eight ball. But Walmart could use this as a golden opportunity to partner with Microsoft and monetize the TikTok base, which could start to rival Instagram in the next few years just given its global presence.
Ives gave the bid an 85 to 90 percent chance of going through.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan or contact via secure email at the address firstname.lastname@example.org