Brief:

Insight:

While details of the agreement are sparse, Walmart partnering
with Microsoft on a bid to acquire TikTok is another indication
that the social video app’s sale will seriously shake up the
digital media sector. Walmart stands to gain access to a platform
that has formidable potential in e-commerce and advertising — two
areas the big-box retailer is investing heavily in as it tries to
grow a fledgling media network and keep pace with online rivals
like Amazon.

“The way TikTok has integrated e-commerce and advertising
capabilities in other markets is a clear benefit to creators and
users in those markets,” Walmart’s statement reads. “We believe a
potential relationship with TikTok US in partnership with Microsoft
could add this key functionality and provide Walmart with an
important way for us to reach and serve omnichannel customers as
well as grow our third-party marketplace and advertising
businesses.”

Walmart added that it was confident the partnership would meet
the demands of both TikTok users and regulators in the U.S.