Walmart Expanding Business Horizons

Amid accusations from the Trump administration regarding user data handling, ByteDance, the Chinese company behind TikTok, is in talks with potential buyers for its operations in the US, Canada, Australia, and New Zealand. Microsoft emerged as a key contender. However, Walmart has now announced its collaboration with Microsoft in the bid for TikTok.

Seeking to compete with Amazon, Walmart aims to diversify its business ventures. The retail giant recently revealed plans for Walmart+, a membership program similar to Amazon Prime. Walmart sees potential in the e-commerce and advertising opportunities that TikTok can offer to users and owners alike, which aligns with their strategy.

Walmart stated, “…a potential relationship with TikTok US in partnership with Microsoft could provide Walmart with an important way to reach omnichannel customers and boost our marketplace and advertising businesses.” They expressed confidence in meeting both user expectations and regulatory concerns.

TikTok boasts around 100 million active users in the US, making it an attractive acquisition target for both Walmart and Microsoft. The ownership structure in the potential deal remains undisclosed.

Daniel Ives from Wedbush Securities highlighted the advantages Walmart could gain in competing with Amazon through TikTok. He stated, “…Walmart could use this as a golden opportunity to partner with Microsoft and leverage the TikTok base, potentially rivalling Instagram in the future due to its global reach.”

While TikTok has yet to finalize a buyer, a decision is anticipated soon.