Walmart and Microsoft are teaming up in a bid to acquire TikTok, in a deal that would give the retail company a key technology to reach younger shoppers and build out its third-party marketplace and advertising business.
With its move, Walmart, which owns UK supermarket chain Asda, hopes to use the highly popular mobile app’s integrated e-commerce and advertising capabilities to reach its own omnichannel customers.
According to the company, a potential relationship with TikTok U.S. in partnership with Microsoft could also grow its third-party marketplace and advertising businesses.
Confirming that the company was pursuing a deal, a Walmart spokesperson told Rapid Meta:
“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.”
ByteDance, the Chinese company that owns TikTok, was ordered by President Trump earlier this month to sell its U.S. assets within 90 days or be barred from conducting business in the country. The Trump administration has long argued TikTok’s data collection could pose a national security threat.
Following Trump’s order, TikTok filed a lawsuit in federal court challenging the Administration’s decision, taking strong exception to the allegation that the company is a national security threat.
A deal is expected to come within a week, before the scheduled 45-day time for the proposed ban to come into effect unless it is bought by a domestic company. A deal could also include TikTok’s Canadian, Australian and New Zealand businesses.
Earlier this month, Microsoft had announced its talks with ByteDance, to buy the app’s business in the US, New Zealand, Australia and Canada. Oracle also joined later in the race to buy TikTok’s U.S operations.
The joint bid comes hours after the resignation of TikTok CEO Kevin Mayer, who spent just three months on the job. Mayer blamed a charged political environment for his exit.
Microsoft stated to Rapid Meta that it “had nothing further to share at this momen”.
Shares of both Microsoft and Walmart rose on the news.
| Security | Last | Change | Change % |
|---|---|---|---|
| WALMART INC. | 136.63 | +5.93 | +4.54% |
| MICROSOFT CORP. | 226.58 | +5.43 | +2.46% |
