In addition to Oracle, which recently expressed interest in the takeover of TikTok, the US supermarket chain Walmart is now also showing interest in buying the social media app together with Microsoft, according to reports from Bloomberg and CNBC. If a takeover of the popular app succeeds, according to a press release from Walmart, it is to be expanded into a shopping platform. In addition, further income is to be generated through advertising, which, according to potential buyers, will also benefit the video creators and users of the platform.
As Walmart explains, TikTok is the perfect platform for reaching consumers and expanding the online business of the retailer, which also operates locally. In the USA, Walmart is currently competing with Amazon in online trading. Acquiring the platform could possibly reduce the industry leader’s large lead and break Amazon’s previous dominance.
TikTok is currently owned by the Chinese Bytedance group, which US President Trump has banned by decree from doing business with American citizens and companies as soon as the planned TikTok ban comes into force in mid-September. Should a suit by the company against this decision prove unsuccessful, it would mean that TikTok would have to withdraw from the U.S. without selling its U.S. business. Trump cited security concerns as the reason for his decision, because user data on the video platform could be read by Chinese authorities.
In addition to the U.S., a potential acquisition includes the TikTok business in Canada, New Zealand and Australia. However, the Chinese domestic market and the EU business would still belong to Bytedance even if Microsoft and Walmart or Oracle were to take over the business.