Walmart Joining Microsoft in TikTok Bid


SAN FRANCISCO — The race to purchase TikTok took one other activate Thursday when Walmart mentioned it was teaming up with Microsoft on a possible bid for the favored Chinese-owned video app.

The discussions are ongoing and different suitors for TikTok are concerned, mentioned two folks near the deal talks, who weren’t approved to talk publicly. It is unclear which firms will finally safe a deal, although TikTok will seemingly decide in the approaching days, they mentioned.

In an announcement, Walmart mentioned, “We are confident that a Walmart and Microsoft partnership would meet both the expectations of U.S. TikTok users while satisfying the concerns of U.S. government regulators.”

TikTok declined to remark and Microsoft didn’t instantly reply to a request for remark. CNBC earlier reported Walmart’s participation.

Dan Ives, an analyst at Wedbush Securities, said in a note to investors that the participation of Walmart was likely “the final piece of the puzzle that ultimately cements Microsoft successfully acquiring TikTok’s U.S. operations for likely $35 billion to $40 billion.”

Late on Wednesday, Kevin Mayer, TikTok’s chief executive, said he was resigning from the company because he had signed on for a global role. He alluded to how the app’s global structure would likely change given all the political criticism. In a note to employees, he also indicated that a deal for TikTok might be close.

“We expect to reach a resolution very soon,” Mr. Mayer wrote.

Zhang Yiming, ByteDance’s chief executive, said in his own note that ByteDance and TikTok were moving swiftly to resolve its issues in the United States and India, where the app was banned in June.

“I cannot get into details at this point, but I can assure you that we are developing solutions that will be in the interest of users, creators, partners and employees,” Mr. Zhang said.

While Walmart has its roots in brick-and-mortar stores, the world’s largest retailer has been pushing into digital businesses, partly as a way to outpace its rival Amazon. And that means expanding into areas like entertainment.

In 2018, the retailer reached a deal to have Metro-Goldwyn-Mayer create short-form original series for Walmart’s ad-supported streaming service, Vudu. At the time, Walmart said it expected to partner with more studios to create content for the service.

It also entered a joint venture with Eko, a New York start-up that focuses on “interactive storytelling,” in which viewers control the plot of commercials and television episodes.



Source link Nytimes.com

Leave a Reply

Your email address will not be published. Required fields are marked *