- Walmart has partnered with Microsoft in bid to acquire TikTok.
- Oracle has also submitted bids in the deal that could finalise within the week, reports stated.
- TikTok's North American, Australian and New Zealand operations could be worth $25 billion to $30 billion.
Retail giant Walmart has partnered with Microsoft in a bid to acquire TikTok in the US. "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," Walmart said in a statement.
Apart from Microsoft and Walmart, Oracle has also submitted bids in a deal that could come within the week, sources told Bloomberg. Walmart would also own a stake in a newly spun off TikTok business, alongside Microsoft, the people said.
Walmart in an emailed statement told Bloomberg that the move could help grow its third-party online marketplace unit along with its nascent advertising arm, two areas that Chief Executive Officer Doug McMillon has said he'd like to expand. The two companies already work together, as Walmart uses Microsoft's Azure cloud platform across the entire company for a wider use of cloud and artificial intelligence. Walmart said TikTok's integrated e-commerce and advertising capabilities in other markets "is a clear benefit to creators and users in those markets."
As per reports, TikTok's parent company ByteDance is nearing a deal to sell TikTok's North American, Australian and New Zealand operations which could be worth $25 billion to $30 billion. Walmart was earlier in talks with Softbank for a partnership but it did not materialise since Walmart does not have a cloud technology component.
Microsoft has been in talks with Byte Dance for weeks. In an earlier statement, the company had said that it plans to finalise the deal with TikTok's parent company, Bytedance by September 15.
US president Donald Trump has rendered an executive order that essentially bans TikTok if it fails to sell its operations to a US firm. The move was brought in last month when Trump referred to TikTok and WeChat as significant threats to national security.
Kevin Mayer stepped down as TikToK CEO on Thursday in the backdrop of the current political environment in the US.
"Against this backdrop, and as we expect to reach a resolution very soon, it is with a heavy heart that I wanted to let you all know that I have decided to leave the company. I understand that the role that I signed up for — including running TikTok globally — will look very different as a result of the US administration's action to push for a sell-off of the US business," Mayer wrote in a letter to his employees obtained by FT.