Since many weeks, TikTok has been in the line of fire from one country after another. India has already banned the app due to tensions with China, and U.S. is about to ban it soon too. Recently, UK has also expressed concerns about user data security and is contemplating to implement some restrictions over the app, similarly, Pakistan Telecommunication Authority also asked the social media app to "block the vulgar and immoral content" in the country. The US President Donald Trump has already issued an ultimatum for the company to sell off its US operations by 12th November. So now, the latest news is that TikTok is nearing to close deals to sell its operations in the US, Canada, Australia, and New Zealand for a value of $20 - $30 billion range. But the final price has not been decided yet.
According to Vanessa Pappas, the head of TikTok’s US business, TikTok is in talks with different investors and has not decided yet about the buyer, but Oracle, Walmart, and Microsoft are the possible contenders. Walmart and Microsoft have placed a joint bid, and Walmart has already seen a 3% rise in its shares since this news has surfaced. Initially Walmart was in talks with SoftBank for a joint bid, but this consortium did not have the cloud technology, so it was anyway likely to fail.
Walmart has told CNBC that the way TikTok has integrated eCommerce, advertising, and entertainment in one app; it is surely going to be beneficial for creators and users in the markets of eCommerce and advertising. Walmart believes that partnership with Microsoft will help them form a potential and successful relationship in the US as Microsoft can provide Walmart a way to reach and serve omnichannel customers. This partnership will allow Walmart to grow their third-party marketplace and ad businesses. Hopefully, this alliance will come up to the expectations of TikTok US customers while also meeting up with the regulations of the US government.
SoftBank and Microsoft have not commented on the issue as of yet.
TikTok’s CEO, Kevin Mayer who joined TikTok earlier this year after resigning from Disney has announced his resignation after this news got leaked to the Financial Times. Mayer had originally wanted to announce his resignation news next week after the finalization of sale agreement. Vanessa Pappas will be heading TikTok US from now on after Kevin Mayer’s resignation.
Read next: Globally, TikTok has 689 million monthly active users
According to Vanessa Pappas, the head of TikTok’s US business, TikTok is in talks with different investors and has not decided yet about the buyer, but Oracle, Walmart, and Microsoft are the possible contenders. Walmart and Microsoft have placed a joint bid, and Walmart has already seen a 3% rise in its shares since this news has surfaced. Initially Walmart was in talks with SoftBank for a joint bid, but this consortium did not have the cloud technology, so it was anyway likely to fail.
Walmart has told CNBC that the way TikTok has integrated eCommerce, advertising, and entertainment in one app; it is surely going to be beneficial for creators and users in the markets of eCommerce and advertising. Walmart believes that partnership with Microsoft will help them form a potential and successful relationship in the US as Microsoft can provide Walmart a way to reach and serve omnichannel customers. This partnership will allow Walmart to grow their third-party marketplace and ad businesses. Hopefully, this alliance will come up to the expectations of TikTok US customers while also meeting up with the regulations of the US government.
SoftBank and Microsoft have not commented on the issue as of yet.
TikTok’s CEO, Kevin Mayer who joined TikTok earlier this year after resigning from Disney has announced his resignation after this news got leaked to the Financial Times. Mayer had originally wanted to announce his resignation news next week after the finalization of sale agreement. Vanessa Pappas will be heading TikTok US from now on after Kevin Mayer’s resignation.
Read next: Globally, TikTok has 689 million monthly active users
