Walmart (WMT.US) confirmed to CNBC that it’s joining forces with Microsoft in order to acquire TikTok's operations. The purchase of a technology company could help Walmart compete better with Amazon. In the near future Walmart is planning to launch a membership program, called Walmart+. The subscription-based service is the retailer’s answer to Amazon Prime, which includes original TV shows and movies.
In a statement, Walmart said TikTok’s integration of e-commerce and advertising “is a clear benefit to creators and users in those markets” however it was not specified how the company would use TikTok or whether it would be part of Walmart+.
“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 (WMT.US) stock jumped almost 4% and is approaching all-time high at $137.81 per share, after the news of TikTok's purchase plans.
