A report from CNBC today exposed TikTok’s apparently selected a bidder to take over its US, New Zealand, and Australian company– and it’ll expose who that is very soon. Word is that it’s down to Walmart and Microsoft or Oracle.
CNBC reports that TikTok’s executives could reveal the deal as early as September 1. While we don’t yet understand who the lucky suitor is, the clever cash’s on Walmart and Microsoft– yeah, I didn’t believe I ‘d be saying that about a social media app in 2020 either. The other likely competitor is Oracle. Under the terms of President Donald Trump’s very first executive order on the matter, TikTok parent company ByteDance would have needed to close a deal with its American bidder by the middle of September. It’s considering that extended that due date to November, however it’s certainly in ByteDance’s benefit to get the deal tattooed quicker rather later.
Walmart’s interest in TikTok surfaced last week, when it emerged that it was joining forces with Microsoft. It’s apparently hoping to use the social networks app to increase its e-commerce profile and its attract young people. As Walmart said in its business statement: “ We are confident that a Walmart and Microsoft collaboration would satisfy both the expectations of U.S. TikTok users while pleasing the concerns of U.S. federal government regulators.” It also reveals admiration for the method TikTok has “integrated e-commerce and advertising capabilities in other markets,” most likely referring to its China-only sibling app, Douyin. Douyin utilizes its material developer to hawk its merch, and the New York Times explains it as having “the type of reach amongst young purchasers that Walmart would like to have.”
Microsoft’s interest in TikTok predates Trump’s executive order. It stopped briefly the offer when Trump apparently revealed displeasure, however later on revealed it was continuing discussions with ByteDance. According to CNBC, Walmart had to team with Microsoft as the US federal government desired a tech business to lead the deal. Probably it (the government) hopes that moving the data to US-based servers might relieve a few of the
That’s not to say that it’s smooth cruising from this point on. Last Friday, the Chinese Ministry of Commerce broadened its list of regulated exports to include AI tech, which is the foundation of TikTok. TikTok later issued a declaration saying (translated) it would strictly abide by the new rules.
We’ll have to wait and see who TikTok’s new American moms and dad will be.