TikTok CEO Kevin Mayer has resigned from the video app company after a whirlwind few months.
In an emailed note to employees, Mayer said, “In recent weeks, as the political environment has sharply changed, I have done significant reflection on what the corporate structural changes will require, and what it means for the global role I signed up for."
Here's why Jim Cramer thinks Mayer left TikTok, and here's a look back at Mayer's brief, four-month stint helming TikTok:
On May 18, 2020, Mayer joined TikTok after leaving Walt Disney (DIS) . He said he was "thrilled to have the opportunity to join the amazing team at ByteDance."
On June 29, India banned TikTok, along with other 58 Chinese apps, citing "national security concerns." India was its biggest overseas market and the ban cost the company more than 120 million users. TikTok is owned by Chinese company ByteDance.
Meanwhile, the Trump administration also worried that TikTok would share user data with China, despite TikTok's assurance that it would not.
"TikTok is led by an American CEO, with hundreds of employees and key leaders across safety, security, product, and public policy here in the U.S. We have no higher priority than promoting a safe and secure app experience for our users," said TikTok's spokesperson. "We have never provided user data to the Chinese government, nor would we do so if asked."
On August 6, U.S. President Donald Trump issued executive orders that would ban TikTok if not sold in 45 days to a U.S. company. On August 24, TikTok sued the Trump administration, calling the ban “unconstitutional.”
Three days later, Kevin Mayer resigned from his role as CEO.
However, Walmart acknowledged that they are partnering with Microsoft to buy the company.
“We believe a potential relationship with TikTok 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," Walmart said, in a statement, on Thursday. "We are confident that a Walmart and Microsoft partnership would meet both the expectations of US TikTok users while satisfying the concerns of US government regulators.”
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