TikTok CEO quits following backlash from U.S. president

TikTok CEO quits following backlash from U.S. president

Walmart, a household name more associated with supermarkets than algorithms, says it sees TikTok as a way to reach so-called omnichannel customers and grow its third-party marketplace and advertising businesses. Walmart said it was "confident" that its joint deal with Microsoft would satisfy both TikTok users and USA government regulators.

The Trump administration's concerns about TikTok's data security may be among the reasons why Walmart made a decision to partner with Microsoft, rather than pursuing a deal individually. Microsoft has previously confirmed it was in negotiations, with a deadline of September 15. TikTok didn't immediately reply to an emailed request for comment.

The US retail giant is the latest company to want a piece of TikTok that has come under fire from the Trump administration that claims TikTok could be used by China to track people for blackmail and conduct corporate espionage.

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TikTok generated revenue of $5.6bn during the first quarter, growth of 130% year-on-year, and in April surpassed 2bn downloads across both iOS and Android devices, according to Sensor Tower. "Over time, the platform could also become a significant channel through which Walmart could directly generate sales". But what would be the impact of such a deal on other brands trying to develop a presence on the platform? The company posted $514 billion in revenue previous year, almost double Amazon's $281 billion.

The president said on August 18 that Oracle was "a great company" that "could handle" buying TikTok. TikTok has already implemented a hiring freeze in the USA for most open positions because of the uncertainty, bringing in only 5% of the staff it planned to recruit, according to the source.

The company provides a platform on which short videos are shared. Microsoft confirmed in late July it was exploring a bid to acquire TikTok's operations in the US, Australia, Canada, and New Zealand - a deal with an estimated value between $10 billion and $50 billion.

The letter also seemed to be a public confirmation that TikTok's global operations will have to be broken up.

Whichever company emerges as TikTok's preferred suitor needs to move quickly to close a deal. The president threatened a ban on TikTok unless its operator, ByteDance, sold its assets to a USA -based company within 90 days.

"Microsoft already has a solid play with LinkedIn, Github, and Xbox, which TikTok could play a valuable piece in all of them", Ng said. Mr Trump, who has become more assertive against China this year, said this month his administration had "credible evidence" that ByteDance might take action to hurt United States security. It says it's not a national security threat.

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