Walmart may join Microsoft in bid for video app TikTok

Walmart said Thursday it may join Microsoft to buy the US-based operations of TikTok, the popular Chinese-owned video app that has come under fire from the Trump administration.

Microsoft and TikTok declined to comment.

TikTok, through its fun, goofy videos, has gained hundreds of millions of users globally. But the White House is pushing TikTok’s Chinese owner ByteDance to sell its US business if it wants to keep operating in the country, citing security risks.

Walmart said in a statement that a deal with Microsoft and TikTok could help it expand its advertising business and reach more shoppers.

The Trump administration is forcing a sale of TikTok’s United States operations because of its Chinese ownership and has threatened to ban the app, which TikTok says has 100 million US users. TikTok has sued to stop the ban, but not the sale order. Microsoft has confirmed discussions with TikTok; other tech companies such as Oracle are also reportedly interested in a possible acquisition.

Over past year, TikTok has tried to put distance between its app and its Chinese ownership. It installed former top Disney executive Kevin Mayer as its American CEO, but he resigned Thursday after just a few months on the job.

In a letter to employees, Mayer said that his decision to leave comes after the “political environment has sharply changed”.

ByteDance launched TikTok in 2017, then bought Musical.ly, a video service popular with teens in the US and Europe, and combined the two. A twin service, Douyin, is available for Chinese users.

AP