Walmart Inc. (NYSE:WMT) is the latest company to join the race to acquire embattled viral video-sharing app TikTok. The nation’s largest retailer has reportedly teamed up with Microsoft Corporation (NASDAQ:MSFT) to buy assets of the embattled yet popular video-sharing app.
Walmart TikTok Plans
Walmart is participating in negotiations with Microsoft over a potential deal. While it might come as a surprise, the retailer is increasingly looking to leverage TikTok integrated e-commerce and advertising capabilities to bolster its access to customers as it looks to enhance its online sales.
In a statement, the retail giant says the addition of TikTok functionalities could provide an important way of reaching and serving Omni-channel customers as well as grow the third-party marketplace and advertising businesses.
TikTok has grown to become a heavyweight in the social networking space focusing on viral videos. The app has over 100 million users in the U.S. With Industry experts valuing its U.S business at close to between $40 and $50 billion. Microsoft Oracle Corporation (NYSE: ORCL), and now Walmart are believed to be highly interested in acquiring its assets in the U.S Canada Australia and New Zeeland.
Walmart joining the acquisition party comes hot on the heels of TikTok CEO Kevin Mayer quitting his job at a time when the app is running out of time to be acquired by a U.S company. Mayer stepped down, citing the change in political environment that made it increasingly impossible for him to continue doing his Job. Mayer quits his job barely five months after his poaching from Walt Disney Co (NYSE: DIS) to steer the viral video app.
TikTok has been hit with a 45-day notice to be acquired by a U.S company or face the risk of its operations in the U.S being closed down completely. The executive order by President Donald Trump cites National security concerns on allegations that ByteDance the parent company has close ties to the Chinese Communist Party.
The executive order against TikTok comes amid escalating tensions between the U.S and China. The tech war started with a ban on Huawei in the U.S that has since ensnared other Chinese apps and tech firms such as Tencent.