Walmart & Microsoft Push Buy of TikTok US Assets
Purchase Would Make Walmart An Online Advertising Leader
$35b to $45 Billion Purchase
Walmart could turn into an online advertising behemoth if its plans with Microsoft to acquire the US assets of China-owned social media/video app company TikTok go through successfully. Walmart is the world's largest retailer. The acquisition of TikTok would make it highly competitive with Amazon, Facebook and Google for young customers on social media. It would also greatly expand Walmart's advertising business and also its business with 3rd party marketplaces.
Ticking Toward a Deadline
President Trump has put the sale of TikTok's US assets into play. He deems TikTok a potential national security risk because of the vast amount of personal data it acquires on users in the US, which the government of China could demand. Trump has ordered China based parent company ByteDance to sell TikTok US assets by September 15 or the company will be banned from doing business in the US.
Big Competition to Buy Rapidly Growing TikTok
Walmart and Microsoft are considered the top contenders to buy TikTok. But Twitter and Oracle are also interested and talking with ByteDance. TikTok is a rapid growth social media platform. It has 100 million active, monthly users in the US and 700 million worldwide. The acquisition would provide Walmart with a huge, new advertising channel. And, Walmart's online advertising business has been growing as it boosts investments in the platform. There are expectations from analysts that a possible deal could be announced within days, the likely price-tag will be $35 to $40 billion. And some analysts believe that in a very few years, TikTok US assets will have a value of $200 billion. If Walmart and Microsoft succeed, that would make them the ultimate shoppers.