Walmart and Microsoft have partnered to negotiate a joint purchase of TikTok, after the US president, Donald trump, gave an ultimatum to the Chinese video-sharing application to abandon its activity in the country amid accusations that the application is a threat to US national security.
"We believe that a potential relationship with TikTok in partnership with Microsoft could provide Walmart an important way for us to reach and serve customers across multiple channels, as well as do grow our third-party market and advertising business”Walmart said in a statement sent to CNBC.
The retail firm has added that its agreement with Microsoft, should the purchase materialize, "would meet user expectations of TikTok in the United States and would satisfy the concerns of Federal Government regulators. "
On August 6, Trump signed an executive order that prohibits any transaction or business with ByteDance, the Chinese developer of TikTok, starting 45 days from that date, which has forced several potential buyers, among which in addition to Walmart and Microsoft find the social network Twitter and Oracle, to speed up your negotiations.
Bytedance, Tiktok's parent company, is expected to announce in the coming days which company will be the buyer of its services in North America, New Zealand and Australia, according to sources familiar with the negotiation cited by local media.
Analysts suggest that, with this move, Walmart seeks to improve its competitiveness against Amazon, which completely dominates the e-commerce market and has made a strong commitment to other businesses such as television production or video games.
This would not be the first time that Walmart has partnered with Microsoft since two years ago they signed an agreement for the retail company to use Microsoft's Azure cloud infrastructure for five years, and a package that includes the productivity applications of Office 365.