In a surprise move to block bidders like Oracle, Walmart said it's teaming up Microsoft to bid on TikTok's U.S., Canadian, Australian and New Zealand operations in a deal that is likely to be in the $20 billion to $30 billion range, sources say.
Walmart confirmed to CNBC that it is interested in buying the tech company. With the confirmation, it joins several other bidders like Oracle.
In a statement, the big-box retailer told CNBC that TikTok’s integration of e-commerce and advertising “is a clear benefit to creators and users in those markets.” It did not say how it would use TikTok or whether it would be part of its Walmart+ program.
"Amazon may have led the revolution in getting general consumers comfortable with ordering online for household items even food, but Walmart's investment to build their test and learn methodologies and their digital properties will position them to rule," said Gregory Ng, CEO of North Carolina-based web optimization consultancy firm Brooks Bell. "Walmart has the distribution footprint that can be even more relevant to the needs of their customers."
Trip Chowdhry, managing director of Global Equities Research, who worked for Oracle in the mid-1990s, said Oracle would make a better bidder than Microsoft because of its cloud and security infrastructure.
After President Trump said TikTok was a security threat to U.S. privacy, Chowdhry said Microsoft does not have the security in its cloud Infrastructure at the semiconductor-chip level like the Oracle Gen 2 Cloud Spartan chip.