Due to a possible ban on the TikTok application in the U.S., and due to political conflicts, part of the company’s business, namely branches operating in the U.S., Canada, and New Zealand markets, is planned to be sold shortly. Among the U.S. companies that could be involved in the deal are Microsoft, Oracle, Twitter, and others.
Another name in the history of the purchase of TikTok was Walmart. The American retailer has confirmed that it is joining forces with Microsoft to participate in the bidding for the purchase of the video-sharing application. Negotiations on a potential deal are already underway, as confirmed by multiple publications.
The total cost of the deal, according to experts, may range from $20 to $30 billion. Buyers are not yet specific, but it is expected that in the coming days, TikTok will decide on the new owner of part of its business.
On the part of Walmart, the interest in TikTok is because the company has managed to integrate e-commerce and advertising opportunities effectively. In a statement, Walmart stressed that this crucial functionality is available to the company and that it will “open a new way to attract and serve multi-channel customers, as well as contribute to the growth of the trading platform and advertising business.”
However, how exactly TikTok will be used in the Walmart business has not yet been reported. The application will either become part of the loyalty program Walmart+ or may be used in any other way. In any case, the company will have access to hundreds of millions of active monthly users of TikTok, and the company will undoubtedly find a way to monetize it. It is also not yet clear how Microsoft and Walmart will share its acquisition and whether the retailer will become the principal owner.
