Walmart said it was joining Microsoft in a bid for social media company TikTok’s US assets, revealing its plans hours after CEO Kevin Mayer said he would step down.
Mayer is leaving just three months after joining, in the middle of negotiations to sell the Chinese-owned video app’s US operations to Microsoft or Oracle.
Retailer Walmart lauded TikTok’s e-commerce and advertising capabilities. The sale of TikTok is happening as the company is under fire from the administration of US President Donald Trump as a potential national security risk due to the vast amount of private data the app is compiling on US consumers.
The Trump administration has demanded that China’s ByteDance, which owns TikTok globally, sell its US operations. Earlier this week, TikTok also sued over an executive order effectively banning it in the US.
“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,” Walmart said in a statement. — Reported by Yingzhi Yang, Kanishka Singh, Katie Paul and Echo Wang, with writing by Brenda Goh and Joshua Franklin, (c) 2020 Reuters