The future of the popular social media app TikTok is still up in the air. ByteDance, the Chinese company that owns TikTok, was granted another week to figure out how to handle a buyout or be banned in the U.S. This issue is the second extension in just a few weeks and extends the deadline to December 4. Walmart has recently thrown itself into the mix again. As early as 2020, Walmart tried to partner with Microsoft to acquire TikTok. The retail giant has decided to give it another try; however, this time it has teamed up with Oracle.
Walmart and Oracle Preparing Bid
Teaming with Oracle is a smart move for the retail giant because Oracle is already an official “trusted tech partner” of TikTok. Walmart believes that buying the social media app will help it break further into the digital space and help it compete with Amazon on a different playing field.
TikTok has an estimated 100 million users in the U.S. and could very well be the gold rush Walmart needs to create consumer shopping experiences in the app. Walmart would greatly benefit from TikTok influencers showing off its products.
ByteDance Wants TikTok to Keep Chinese Roots
ByteDance has been trying to alleviate security concerns by making the U.S. version of TikTok its entity. China hopes to meet Washington’s demands while still keeping it connected to its Chinese roots.
Back on January 19, TikTok found itself removed from Google Play and the U.S. App Store as a result of a new law that used national security concerns to label the app illegal. In response to the law, ByteDance decided to disable the app in the U.S.
TikTok Unavailable on App Store and Google Play
On his first day in office, Trump indicated that he would sign an executive order that would allow the app to remain online. TikTok’s service was restored just 14 hours after it went offline. Trump’s executive order, however, required that ownership be transferred within a few weeks. The order stated that if a sale did not take place, the app would be taken down, and the next time could be for good.
The social media app remains unavailable on both the App Store and Google Play. Various players have been mentioned in the talks of purchasing the app, including “Shark Tank” star Kevin O’Leary and billionaire Elon Musk. At one point, Trump tossed out the idea that the U.S. may buy the app through a sovereign wealth fund.
China and the U.S. Relationship is Strained
While the TikTok controversy continues, the relationship between China and the U.S. has become severely strained due to Trump’s new tariffs. China has also said that it is considering launching an antitrust investigation into both Apple and Google. For the time being, TikTok remains online, however, users and influencers are stuck in a “wait to see mode” while Walmart tries to come up with a bid that ByteDance cannot refuse.
