Microsoft And Walmart Come Together In A Bid To Buy Tiktok

Must read

Amid nationwide protests in India , The 3 controversial Farm Bills get the assent of the President, become laws. Is India Turning Into Dictatorship...

Recently, the Agricultural Minister of Union, Narendra Singh Tomar, introduced three Farm Bills in the legislature which triggered massive debates all around...

Kim Jong-un issued a rare apology to his South Korean counterpart

Recently, the Leader of North Korea, Kim Jong-un, did something unexpected. He issued a rare apology to Moon Jae-in, his South Korean...

INDIAN MARKETS LOG HAS BIGGEST FALL IN FOUR MONTHS

Indian stocks plunged by the most in four months on Thursday, as the delicate worldwide financial recuperation took steps to slow down...

China Razing Mosques in a bid to Create Autocratic State

How to protect one's faith in the land of the oppressor?

Last week, Walmart and Microsoft came together in a bid to buy Tiktok in the US.Walmart is one of the world’s largest retailer but it has most definitely failed in its efforts to break Amazon’s online dominance.TikTok’s US business appears to go off the air, as with the Trump administration trying to force a sale of its US operations claiming national-security risks due to its Chinese owner, ByteDance. Although TikTok denies it is a risk and is suing to stop the Trump administration from a threatened ban.TikTok has been at the center of a diplomatic furor between the US and China. Walmart is keenly interested in TikTok as it would help it connect with younger shoppers around the world who turn towards the Internet to view lifestyle trends. So to fulfill these needs Walmart recently joined Microsoft in a Bid to Buy TikTok. In its defense, Tiktok has already said that it has never provided any US user data to the Chinese government and is very secure about these things.

The app has faced various political allegations from the Trump Government since Trump signed an executive order on August 6 giving American citizens 45 days to stop doing business with the apps Chinese parent company ByteDance. President Trump claims TikTok could be used by China to track the locations of its federal employees, could be used to build dossiers on people for blackmailing, and conducting corporate espionage. Due to these reasons, TikTok CEO Kevin Mayer has quit his position after just three months of service, now as the company challenges the US ban. The order effectively has set a deadline for a sale of TikTok to a US company, with President Trump insisting that the US should get a cut or commission for its role in making the entire deal happen successfully. Analysts are quite confident that a Walmart and Microsoft partnership would meet both the expectations of US TikTok users while satisfying all the security concerns of the US government.

Analysts predict that Walmart’s decision to join Microsoft in a bid to acquire TikTok could give the two companies a powerful edge against their mutual rival e-commerce giant Amazon. Moreover, Microsoft and Walmart are already business partners. Microsoft caters cloud computing services to Walmart that helps run the retailer’s stores online effectively. The two companies had signed a 5-year partnership in 2018, enabling them to join hands against Amazon, which competes with Walmart in the e-commerce business and Microsoft in cloud computing services. Working in sync on the TikTok acquisition would be an extension of that partnership and provide various inroads to the new generations, said Futurum Research analyst Daniel Newman in a recent interview.

Apart from Walmart and Microsoft, Oracle has also submitted its bids in a deal that could become fruitful within a week, sources told Bloomberg. Walmart would also own a stake in a newly spun-off TikTok business, along with Microsoft, experts said. Walmart released an email statement to Bloomberg and said that the move could help grow its third-party online business unit along with its nascent advertising arm, which are the two key areas that Chief Executive Officer Doug McMillon has said he’d like to expand now.

As per recent reports, TikTok’s parent company ByteDance is about to crack a deal to sell TikTok’s North American, New Zealand, and Australian operations which could be worth $25 billion to a maximum of $30 billion. Earlier Walmart was in talks with Softbank for a partnership but it did not materialize since Walmart does not have a cloud technology component as of yet. And Microsoft has been in talks with Byte Dance for weeks. In an earlier statement, the company declared that it plans to finalize the deal with Bytedance, which is TikTok’s parent company by September 15. In a recently issued statement, Walmart said that it believes TikTok’s integration with advertising is a clear benefit to its creators and users in those markets respectively and offers an opportunity to bring a new spin to e-commerce services.

According to reports, Walmart had originally considered a initiating a deal with Google’s parent company Alphabet but later switched to Microsoft. The reason for the failure of this deal is that Walmart wasn’t able to gain a majority stake in TikTok if it partnered with Alphabet. Although TikTok, Microsoft, and Walmart declined to comment on this last week.

ByteDance launched its short video app TikTok in 2017, then bought Musical.ly, which is a video service popular with the majority of teens in the U.S. and Europe, and Asia. Similarly, a twin service, Douyin, is available for Chinese users.U.S. authorities are highly concerned that TikTok would turn over its user data to Chinese authorities and that it censors content that would upset China thereby proving it to be a security threat. Although TikTok denies that it has shared its US user’s data with the Chinese government and would not do so even if asked to do, nor would it censor videos at the Chinese authority’s request. TikTok has clearly stated that says it’s not a national security threat.

The sale situation has been unusual in the US, with President Donald Trump demanding payment or commission for the U.S. government for its part in finalizing this deal, a step that analysts say is unprecedented in the history of the US. Trump has given ByteDance a deadline until September 15 to complete the entire sale process, or face a forced shutdown of the TikTok app in the U.S. Other potential bidders are said to include software giants like Oracle. President Trump said on August 18 that Oracle was a great company to partner with TikTok that could handle all its operations securely but the deal didn’t go ahead. He further declined to answer a question asking for his preference between Oracle and Microsoft as buyers.

More articles

Leave a Reply

Latest article

Amid nationwide protests in India , The 3 controversial Farm Bills get the assent of the President, become laws. Is India Turning Into Dictatorship...

Recently, the Agricultural Minister of Union, Narendra Singh Tomar, introduced three Farm Bills in the legislature which triggered massive debates all around...

Kim Jong-un issued a rare apology to his South Korean counterpart

Recently, the Leader of North Korea, Kim Jong-un, did something unexpected. He issued a rare apology to Moon Jae-in, his South Korean...

INDIAN MARKETS LOG HAS BIGGEST FALL IN FOUR MONTHS

Indian stocks plunged by the most in four months on Thursday, as the delicate worldwide financial recuperation took steps to slow down...

INDIAN GOVERNMENT FAILS TO ANSWER THE QUESTIONS RAISED ON THE UNAVAILABLE DATA:

The country, which is seventh largest in the world and the second most populated country housing more than 1.3 billion people, is...
%d bloggers like this: