Illustration: Aïda Amer/Axios

Microsoft is working with Walmart on its efforts to buy TikTok's U.S. business from China's ByteDance, Axios has learned from multiple sources close to the process.

The state of play: The idea would be to help turn TikTok U.S. into more of an e-commerce app for creators and users, much like what TikTok parent company ByteDance does with a similar app in China.

  • The news was first reported by CNBC, which later said Walmart confirmed its participation.
  • The development comes just hours after former Disney executive Kevin Mayer resigned as CEO of TikTok and COO of ByteDance, with sources saying he'd been excluded by ByteDance from the takeover talks.
  • There is not yet a signed agreement between Microsoft and ByteDance, as the sides technically have until Sept. 15 to submit a deal proposal to the White House for approval.
  • Conversations continue to only center on TikTok's operations in the U.S., Canada, Australia and New Zealand.

Between the lines: It's possible that Walmart also has had discussions with Oracle, which also continues to negotiate with ByteDance.

  • SoftBank Group is not involved in the Microsoft/Walmart effort, although the Japanese firm has made inquiries to ByteDance, per sources.

The bottom line: Walmart adds more financial firepower and e-commerce know-how to Microsoft's efforts. But Walmart also has a significant presence in China, which could complicate Microsoft and ByteDance's efforts to get a deal through the Trump administration.

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Ina Fried, author of Login
Sep 18, 2020 - Technology

Scoop: How the Oracle-TikTok deal would work

Illustration: Aïda Amer/Axios

An agreement between TikTok's Chinese owner ByteDance and Oracle includes a variety of concessions in an effort to make the deal palatable to the Trump administration and security hawks in Congress, according to a source close to the companies.

Driving the news: The deal, in the form of a 20-page term sheet agreed to in principle by the companies, would give Oracle unprecedented access and control over user data as well as other measures designed to ensure that Americans' data is protected, according to the source.

New downloads of TikTok, WeChat to be blocked in U.S. on Sunday

Illustration: Sarah Grillo/Axios

The Commerce Department issued Friday an order blocking new downloads of WeChat and TikTok in the U.S. as of Sept. 20.

The state of play: President Trump has been in a standoff with TikTok, threatening to ban the app if its Chinese owner, ByteDance, does not relinquish control to a U.S. company. A deal is in the works with the American tech company Oracle, but would need to go through before Sunday to prevent TikTok from being ousted from app stores.

TikTok calls for industry support as it promises to challenge ban

Illustration: Sarah Grillo/Axios

TikTok received an unlikely vote of public support from its rival Instagram Friday, in response to the Commerce Department's latest order barring downloads of the app beginning Sunday. Meanwhile, the Chinese-owned video platform also said it would challenge the Trump administration's ban order as a violation of due process.

Why it matters: Major internet platform companies do not like to see different rules written for international apps in different countries, and many in the industry are beginning to view the campaign against TikTok as a dangerous precedent.