Walmart shares up after it joins Microsoft to bid for TikTok

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Walmart shares up after it joins Microsoft to bid for TikTok

With Walmart's confirmation, it joins several others trying to acquire the tech company

Friday August 28, 2020 9:47 AM, IANS

San Francisco: Retail giant Walmart has confirmed that it is teaming up with Microsoft in a bid for China-based TikTok, the media reported on Thursday.

According to a CNBC report, Walmart "is interested in buying the popular short-form video app owned by ByteDance".

Walmart shares were up nearly 5 per cent after the news.

ByteDance is near a pact to sell its US, Canadian, Australian and New Zealand operations in a deal that's likely to be in the "$20 billion to $30 billion range".

ByteDance negotiating with various companies

TikTok's parent ByteDance is negotiating with three companies, including Microsoft and Oracle, and a deal announcing the sale of its US operations is expected in the coming days, according to the report.

With Walmart's confirmation, it joins several others trying to acquire the tech company.

The development comes on a day when TikTok CEO Kevin Mayer announced his resignation.

Less than six months into the job, Mayer announced his departure in an internal email seen first by the Financial Times.

The report said that TikTok's general manager Vanessa Pappas will take over as the interim CEO.

According to the CNBC report, Mayer originally intended to announce his resignation along with the sale agreement next week.

Threat to ban TikTok

TikTok came under pressure to sell its US operations after President Donald Trump threatened to ban the short-video-sharing platform over national security concerns.

Trump issued an executive order on August 6, prohibiting ByteDance from conducting any transaction in the US within 45 days.

The US President issued another executive order on August 14, giving ByteDance an option to divest its TikTok business in the US within 90 days.

TikTok has filed a lawsuit against the first executive order.

Nearly 100 million Americans turn to TikTok for entertainment, inspiration, and connection and countless creators rely on its platform to express their creativity, reach broad audiences, and generate income.

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