The bid for Tik-Tok is getting into the hands of Walmart as it looks from here. On Thursday, Walmart stated that it is teaming up with Microsoft in the Tik-Tok deal. Plus, the sales of Walmart were high up to $136.63 on Thursday and it was for the 52-week high. And, at the close they were up nearly 5% to $136.63 and this brought up the company’s market cap to almost $397 billion.
On the other side, Beijing based ByteDance company is near to agreeing to sell its instant-video making app Tik-Tok to the United States, Canadian, Australian, and New Zealand operations. And, as per the sources, this deal is likely to be in the $20 billion to $30 billion range. Plus, the sources also confirm that the company has not yet given its decision for the final buyer but it is going to announce it soon in the coming days.
It is not just Walmart that is trying to acquire the tech company there are several others in the race including Oracle. Though, for now, Walmart’s spokesman Randy Hargrove has not given any comments on how the two companies would spilt ownership of Tik-Tok, if they win the bid and whether the retailer would be the majority owner. This is another pursuing step by the retailer in this period when it is trying to compete with Amazon. It is also planning to launch a membership program called Walmart+ soon. This subscription-based service is the retailer’s ace card to Amazon Prime, which includes original TV shows and movies.
The big-box retailer said in a statement that “Tik-Tok’s integration of e-commerce;and advertising is a clear benefit to creators and users in those markets. We believe a potential relationship with Tik-Tok US 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 Walmart and Microsoft partnership would meet; both the expectation of US Tik-Tok users while satisfying the concerns of US government regulators.”
If this huge deal is cracked up then it would give Microsoft access to hundreds of millions of consumers who could buy their products or become a lucrative audience for ads. Tik-Tok mentioned in a filing this week that it has nearly 100 million monthly active users from the U.S.
Daniel Ives, managing director and technology analyst at Wedbush Securities;described Tik-Tok for Walmart’s e-commerce business as “a huge shot in the arm”. He added “When you think right now about going up against the 800-pound gorilla, Amazon; obviously they have been behind the eight balls. But Walmart could use this as a golden opportunity to partner with Microsoft and monetize the Tik-Tok base; which could start to rival Instagram in the next few years just given its global presence.”
The Walmart involvement in the Tik-Tok deal came just after hours of Kevin Mayer quit as Tik-Tok CEO due to ongoing political turmoil.