The Strategist

Walmart teams up with Microsoft to buy TikTok

08/28/2020 - 09:45

Walmart, the largest supermarket chain in the United States, has filed a joint bid with Microsoft to purchase the Chinese app TikTok. The retailer's decision was confirmed by a Walmart representative on CNBC. According to Bloomberg sources, the owner of the application, ByteDance, has so far received two offers to purchase - a joint one from Walmart and Microsoft and one from Oracle. Final agreements can be reached within a few weeks.

“We believe that a potential relationship with TikTok in partnership with Microsoft could <…> provide Walmart with an important way to reach and serve our omnichannel customers, as well as develop our third-party market and advertising business,” said a spokesperson for the retailer.

The possible amount of the deal was not named, but, according to various media reports, it could range from $ 20 billion to $ 30 billion.

On August 3, US President Donald Trump announced that the Chinese TikTok app would cease to operate in the US from September 15 unless Microsoft or another US company buys it. Earlier, the head of the White House said that Chinese social networks TikTok and WeChat can be used to collect information about US citizens. On August 7, the head of the White House signed a decree in which he set aside 45 days to terminate transactions with companies that own these applications in the US jurisdiction.