Walmart eyes e-commerce gains from TikTok deal - Mobile World Live

Walmart eyes e-commerce gains from TikTok deal

27 AUG 2020

Walmart joined hands with Microsoft to make a bid for troubled social media app TikTok, CNBC reported, in a move aimed at boosting its e-commerce business.

Details of the arrangement were not provided, but Microsoft said previously it was exploring a purchase agreement with TikTok parent ByteDance which would “result in Microsoft owning and operating TikTok”, with other US investors invited to participate “on a minority basis”.

In a statement to CNBC, Walmart said the app could provide “an important way for us to reach and serve omnichannel customers, as well as grow our third-party marketplace and advertising businesses”.

Various media previously reported TikTok conducted a few tests of shopping features on its platform in late 2019 and early 2020, but the company has yet to make those tools widely available.

The news of Walmart’s interest came as Reuters reported ByteDance was nearing a deal to offload TikTok’s US, Canada, Australia and New Zealand operations for between $25 billion and $30 billion.

Earlier this month, US President Donald Trump ordered ByteDance to sell TikTok’s US business within three months, claiming the parent’s ties to China posed a national security risk. Besides Microsoft, Oracle and Twitter were also floated as potential suitors.

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Diana Goovaerts

Diana is Mobile World Live's US Editor, reporting on infrastructure and spectrum rollouts, regulatory issues, and other carrier news from the US market. Diana came to GSMA from her former role as Editor of Wireless Week and CED Magazine, digital-only...

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