Walmart enters race to buy TikTok

Walmart is teaming up with Microsoft in a bid to buy popular short-form video application TikTok.

China’s TikTok is nearing an agreement 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. Walmart joins several others interested in the tech company, including Oracle.

In a statement, the retailer said TikTok’s integration of e-commerce and advertising was "a clear benefit to creators and users in those markets.”

“We believe a potential relationship with TikTok US in partnership with Microsoft could add this key functionality and provide us with an important way for us to reach and serve omnichannel customers as well as grow our third-party marketplace and advertising businesses,” it said.

“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.”

The move comes as Walmart steps up its efforts to better compete with Amazon. This includes its forthcoming Prime competitor, Walmart+.

"Endgame for Walmart and Microsoft is access to hundreds of millions of active users globally that they can advertise their products to, leveraging the huge brand equity TikTok has built up," retail and retail property specialist Jonathan De Mello tweeted yesterday.