Yes, you read that headline correctly. Retail giant Walmart is teaming up with Microsoft in an effort to purchase Tik Tok. The news comes amid the company scrambling to find a buyer before a US ban takes effect in September. Microsoft emerged as a potential suitor for Tik Tok almost immediately after the Trump administration announced plans to ban the Chinese-based company.
According to a report by CNBC, Walmart and Microsoft joining forces to buy Tik Tok would be less about the actual service itself and more about their massive customer base. If the two companies were allowed to purchase Tik Tok, they would have immediate access to over 90 Million subscribers on the service. This would instantly bolster their reach for both advertising and e-commerce. Walmart specifically has been rumored to want to directly compete with Amazon in this space, and having access to the Tik Tok user base would definitely give them a nice boost.
The Trump administration first announced plans for a potential ban back in July. This was followed by an Executive Order on Aug. 6th alleging China could be using the app to gain access to users’ personal info. Tik Tok CEO Kevin Myer quit the company on Thursday due to a forced sale of Tik Tok that is indeed politically influenced.