The latest news is out, and we get to know that Walmart joins Microsoft in the TikTok bidding process. In an interview with the BBC, Walmart says that they feel such a deal will further promote their brand. As a result, Walmart may be able to expand its operations further. If the American retail giant Walmart joins Microsoft for the deal, TikTok will find a way to run its business in the country.
Anyway, the US government has given an ultimatum of 90 days to ByteDance. They have two options for further survival. Either they need to sell their US business to a native company or accept the ban. President Donald Trump decided the same following doubts of information security threat. His experts believe that the video-sharing app is a way of transferring user information from the US to Beijing. On Thursday, August 27, the chief of TikTok submitted his resignation, not being able to wait for a ban.
On the other hand, Microsoft now says that they do not have any comments to make regarding the dealing. However, during the beginning of this month, they informed the BBC about discussions of a takeover with TikTok. Presently, Walmart is going to overshadow other bidders such as Oracle to partner with Microsoft. Besides, the retail giant feels that collaboration has high potential. TikTok may fetch as much as £22 billion or $30 billion if there is a final deal.
Chances of business expansion if Walmart joins Microsoft
Since the time of the app launch, it has gathered a massive following, especially within the youngsters. TikTok started back in 2018, and since then, has over a few million subscribers, the majority in the USA. It is a platform on which users can create short clippings with filters. Moreover, there is a wide array of songs that you can use as playback tunes.
As mentioned earlier, the Trump bureau believes that the TikTok owner Bytedance is a security threat. The Chinese organization is now facing allegations of personal data transfer from the USA to China. President Donald Trump has repeatedly mentioned that the data that reaches China is at a significant risk of exploitation. Since 1/8 of the total TikTok subscribers are from the USA, the government is highly concerned.
Besides China, India has also banned several Chinese apps, including TikTok. The reason is the same as even this country believes that Chinese apps surreptitiously transfer user data. However, Beijing continually denies all the allegations of security theft. Moreover, Zhang Yiming, ByteDance owner, is facing severe backlash for selling off the app to the USA. Yiming has recently told his Chinese staff that he feels there is no other option left. It means that selling off their US arm to a native organization is the only way to avoid a complete ban. Besides, there are chances of flourishment if Walmart joins Microsoft. Apart from TikTok, other Chinese apps, including WeChat, may also face a complete ban.