September 25, 2020

Smartphone Camp

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Walmart Announces Plans to Buy TikTok in a Group Bid

2 min read

Walmart is a retail giant in the US and other countries in the world. The company recently announced plans to purchase TikTok through a group bid involving Microsoft and this announcement severely shook business Twitter.

Walmart spoke to CNBC and confirmed that it is interested in purchasing TikTok. Here is what the company 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.”

When the news of the possible purchase was announced, Walmart’s stock price rose from 2% to 4%. Microsoft on the other hand refused to make any comment when The Independent interviewed the public relations officer.

Walmart has been developing Walmart+ which provides a service similar to that of Amazon, offering same-day delivery, early access to various deals, and discounts. However, the company did not state how TikTok would be of influence to Walmart+.

Aside Walmart and Microsoft, Twitter has shown interest in the social media company buy applying a bid. Also, Oracle and Alphabet have individually shown interest in making bids to take over TikTok’s management.

With President Donald Trump’s order to ban the app from the US based on national data risks, the company has no choice other than handling management to another body. The company has until the 21st of September, 2020 to make final decisions before it would be removed from the country.

For people thinking TikTok was the only victim of President’s trump decisions, you should note that he also implemented the same rule on WeChat. WeChat is a Chinese owned messaging and payment app, which was banned due to similar circumstances TikTok found themselves, although Apple and Disney have warned against it.

Source

Author: Joel Onyeike

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