Microsoft and Walmart acquiring TikTok would give the companies 'riches of data' to compete with top rival Amazon, analysts say (MSFT, WMT, AMZN)
Microsoft and Walmart teamed up on a bid to acquire a portion of TikTok, Walmart confirmed to Business Insider. If the bid is successful, analysts say acquiring TikTok would give the companies "riches of data" to take on their mutual biggest rival, Amazon. The Trump administration originally set a Sept. 15 deadline for TikTok to find a buyer, which has since been extended, but some reports suggest a decision could come much sooner. Are you a Microsoft employee? Contact this reporter via encrypted messaging app Signal (+1-425-344-8242) or email (email@example.com). Visit Business Insider's homepage for more stories.
Microsoft and Walmart are teaming up in a bid to acquire a portion of TikTok's operations, in a move that analysts say would give the companies "riches of data" to take on their mutual biggest rival, Amazon. Microsoft has said it's exploring a deal to buy TikTok's operations in several countries including the US by Sept. 15 as its Chinese parent company ByteDance faces increasing pressure from the Trump administration. Then, on Thursday, Walmart said it has partnered with Microsoft on the bid. Microsoft declined to comment. "The way TikTok has integrated e-commerce and advertising capabilities in other markets is a clear benefit to creators and users in those markets," Walmart said in a statment to Business Insider. "We are confident that a Walmart and Microsoft partnership would meet both the expectations of US TikTok users while satisfying the concerns of US government regulators." Unconfirmed reports are swirling, but other companies said to be in the mix include Oracle (reported to be close to a deal to buy TikTok for $20 billion with support from the White House), plus SoftBank, Twitter, Netflix, Apple, and Alphabet. The Trump administration originally set a Sept. 15 deadline for TikTok to find a buyer, which has since been extended, but some reports suggest a decision could come much sooner. Wedbush Securities analyst Dan Ives said Walmart is the "final piece of the puzzle" for Microsoft to acquire TikTok's US operations, which he expects will be valued from $35 billion to $40 billion. The deal, he said, would ultimately help the companies take on Amazon. The Microsoft Azure cloud is widely considered the second-place player in the market behind Amazon Web Services, while Walmart has redoubled its ecommerce efforts to take on Amazon's core retail operations. With Amazon an unlikely buyer for TikTok given the recent negative attention it's received from Washington DC, Walmart might sense an opportunity. "Walmart would be clearly interested in owning TikTok for its potential e-commerce and advertising capabilities to further boost its consumer presence as it further battles Amazon (which cannot touch TikTok given antitrust issues) in the field," Ives said. Microsoft and Walmart already work closely together. The companies teamed up in 2018 to largely move Walmart to Microsoft's Azure cloud and Microsoft 365 bundle of cloud-based business software applications. That move, too, was seen as a way for the companies to take on Amazon. Working together on the TikTok acquisition would be an extension of the partnership, Futurum Research analyst Daniel Newman said. "With the demographic that TikTok serves, the e-commerce play that can tie to the riches of data being created on the platform will have a greater means to directly monetize with Walmart's expansive online commerce and logistics experience," Newman said. Moor Insights & Strategy analyst Patrick Moorhead said bringing Walmart into the deal strengthens Microsoft's bid. "A joint venture or co-investment lowers the risk for Microsoft and could enable it to make a higher bid if it had to," he said. Are you a Microsoft employee with insight to share? Contact reporter Ashley Stewart via encrypted messaging app Signal (+1-425-344-8242) or email (firstname.lastname@example.org).Join the conversation about this story » NOW WATCH: How waste is dealt with on the world's largest cruise ship
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The download page for ByteDance Ltd.'s TikTok app is arranged for a photograph on a smartphone...The download page for ByteDance Ltd.'s TikTok app is arranged for a photograph on a smartphone in Sydney, New South Wales, Australia, on Monday, Sept. 14, 2020.Brent Lewin | Bloomberg | Getty ImagesPresident Donald Trump said Saturday he has approved a deal in principle in which Oracle and Walmart will partner with ...
Sources: Oracle has leapfrogged Microsoft as the most likely buyer of TikTok's US operations, but there is still a possibility of no deal happening (Dan Primack/Axios)
Dan Primack / Axios: Sources: Oracle has leapfrogged Microsoft as the most likely buyer of TikTok's...Dan Primack / Axios: Sources: Oracle has leapfrogged Microsoft as the most likely buyer of TikTok's US operations, but there is still a possibility of no deal happening — Oracle has leapfrogged Microsoft as the most likely buyer of TikTok's U.S. operations, according to multiple sources familiar with the process.
TikTok owner ByteDance rejected Microsoft's bid for the app's US operations, Oracle reportedly chosen as US 'technology partner'
Summary List Placement The Chinese owner of TikTok rejected Microsoft's offer to buy US operations for...Summary List Placement The Chinese owner of TikTok rejected Microsoft's offer to buy US operations for the popular video app, according to a statement from Microsoft released on Sunday. The move left Oracle as the sole publicly known contender to purchase the American operations of TikTok. "ByteDance let us know today they would not be selling TikTok's US operations to Microsoft," Microsoft wrote in...