Walmart Wants to 'Play Offense' By Joining Microsoft's Bid for TikTok
Walmart is joining Microsoft in a bid for the Chinese video application TikTok.
“The way Tik Tok has integrated e-commerce and advertising capabilities in other markets is a clear benefit to creators and users in those markets,” Walmart said.
“We believe a potential relationship with Tik Tok US in partnership with Microsoft could add this key functionality and provide Walmart with an important way for us to reach and serve omnichannel customers as well as grow our third-party marketplace and advertising businesses," the company continued.
And Walmart said that joining Microsoft, the Redmond, Wash., software icon, on a deal would ease the concerns of regulators about TikTok.
Microsoft early this month had said it was talking with Tiktok's parent, Bytedance, about acquiring the video app.
The Walmart announcement on Thursday happened on the same day that TikTok Chief Executive Kevin Mayer resigned, just three months after taking the job.
In a memo sent to staff on Wednesday, Mayer, an ex-Disney (DIS) - Get Report executive, said that the "political environment has sharply changed" as the company's ties to the Chinese central government has come under scrutiny around the world.
Vanessa Pappas, head of TikTok's U.S. operations, will run the company following Mayer's departure.
Earlier this month, the U.S. Senate unanimously approved a bill to ban TikTok from use on government-issued devices. President Donald Trump signed the No TikTok on Government Devices Act the same day.
Jeff Marks, senior portfolio analyst with Jim Cramer's Action Alerts PLUS portfolio, joined TheStreet to discuss the acquisition.
You can follow Katherine Ross on Twitter at @byKatherineRoss.
Latest Videos From TheStreet and Jim Cramer:
- Coronavirus Update: Abbott's Fast $5 COVID-19 Test Gets FDA Emergency Use Authorization
- Salesforce Earnings Has Investors Really Excited About Software
- Jim Cramer’s Outlook on Oil Ahead of Hurricane Laura
- Big 12 Commissioner Explains Decision to Play College Sports to Jim Cramer
- McDonald’s Looking Into More Cover-Ups Under Former CEO’s Watch