Microsoft may team up with none other than Walmart to buy out and ultimately save TikTok in the US. That’s according to a recently reported announcement from the world’s largest retailer, detailing the potential partnership.
The news follows other widespread reports indicating that TikTok could be sold within the next 48-hours. Microsoft has been a frontrunner to buy TikTok since just after the company was forced into its position by an executive order from US president Donald Trump. Mr. Trump, along with several members of both parties, have labeled the app a potential security risk due to its ties with China via its parent company.
The executive order effectively banned “transactions” with TikTok unless stipulations were met. One of those was that TikTok needed to be sold to a US company.
This isn’t an unusual team-up but why would Walmart want to buy TikTok?
Walmart and Microsoft have teamed up in the past, so this partnership wouldn’t be too unusual. In fact, Walmart utilizes Microsoft technology heavily in its world-class inventory systems. As well as in its AI and other data management systems. But this deal would be a bit different, to say the least.
The company says that the partnership would help it to expand its advertising and integrated e-commerce capabilities. Those benefits also already provides clear benefit to users, particularly creators, according to a Walmart spokesperson.
Combining Microsoft’s know-how with Walmart’s in a purchase of TikTok US will help TikTok grow in those areas too. And the company says it is “confident” that the partnership can continue to provide the featuers and app experience users expect.
When could this be official?
Now, other reports have indicated at various times that Oracle was also in the running to buy TikTok. But Walmart is announcing this partnership itself. So that other deal seems to be out of the realm of possibility at this point. Instead, whether or not Walmart becomes the new part-owner of the app and service as soon as the next few days seems to depend on Microsoft. Or at least on how close Microsoft and Walmart are to closing the deal with TikTok.