The world’s largest retailer made a joint bid with tech giant Microsoft to buy TikTok’s US business.
Walmart is the latest company to want a piece of TikTok, the popular Chinese-owned video app that has come under fire from the Trump administration.
Microsoft and Walmart Relation
Microsoft and Walmart are already business partners.
Microsoft provides cloud computing services that help run the retailer’s stores and online shopping.
The two companies signed a 5-year partnership in 2018, enabling them to join forces against a shared rival: online shopping giant Amazon.
About Tik Tok
ByteDance launched TikTok in 2017, then bought Musical.ly, a video service popular with teens in the US and Europe, and combined the two.
Issues with Tik Tok
US authorities are concerned that TikTok would turn over user data to Chinese authorities and that it censors content that would upset China.
Impact of the Issue
The White House is pushing TikTok’s Chinese owner ByteDance to sell its US business if it wants to keep operating in the country, citing security risks.
Emergence Effect
The emergence of Walmart’s bid follows the resignation of TikTok’s Chief Executive Officer (CEO) Kevin Mayer.
In addition to Walmart and Microsoft, Oracle is also bidding for TikTok’s US operations along with a coalition of investors.
Oracle’s Deal
Oracle has proposed a deal of $20 billion in cash and stock.
Oracle’s offer would be made up of $10 billion in cash and $10 billion in Oracle stock plus 50% of annual TikTok profit would flow back to ByteDance for two years.
