Walmart has confirmed that it is pursuing an acquisition of Tik Tok, the video-sharing social networking service. The retailer is reportedly partnering with Microsoft to make the bid. Sources say the deal could be worth $20 to $30 billion. Walmart isn't the only interested party. In making a bid with Microsoft, it joins several other bidders, including Oracle.
Just how Walmart would put Tik Tok to use has not been announced, but the retailer called the potential acquisition an important way to reach and serve omnichannel customers. Walmart also mentioned a benefit to its third-party marketplace and advertising business.
In a statement, the big-box retailer said TikTok’s integration of e-commerce and advertising “is a clear benefit to creators and users in those markets.” It did not say how it would use TikTok or whether it would be part of Walmart+.