Walmart is teaming up with Microsoft in a joint bid to acquire TikTok, a surprise move that signals the retail giant’s desire to become a force in technology and media and reach younger shoppers, reported Bloomberg.
The move could help expand Walmart’s third-party online marketplace unit along with its nascent advertising arm, Walmart said in an emailed statement. Chief Executive Officer Doug McMillon has said he’d like to expand those two areas. The two companies already work together, as Walmart uses Microsoft’s Azure cloud platform across the entire company.
Walmart’s shares jumped as much as 3.6% to $135.47 in New York following news of the joint pursuit of TikTok, the biggest intraday gain since July 7.
CNBC reported Thursday that TikTok is nearing an agreement that could be announced as soon as next week. The deal is likely to be in the $20 billion to $30 billion range, the report said.