Walmart is reportedly, probably, almost definitely purchasing 7.5% of TikTok in a tentative deal with Oracle. You’ve seen how this has played out; I have to hedge my bets.
More details: Walmart CEO Doug McMillon will become one of five board members of the new TikTok entity, TikTok Global. In a statement, Walmart said it would bring “omnichannel retail capabilities” to the platform.
TikTok’s survival is a blessing for dance challenge choreographers and commerce pros alike.
- TikTok’s 100 million U.S. users provide Walmart (and its third-party seller network) with advantageous customer data.
- The retailer will likely encourage TikTok to prioritize in-app purchasing tools and advertising opps.
My caveat: Former MySpace users know how fickle social media rankings can be. If power users interpret Walmart’s efforts to monetize TikTok as too corporate, the app could lose the quirks that made it an overnight success.
Zoom out: A revamped TikTok could be an inflection point in U.S. social commerce. Pre-deal, the industry was on track to generate more than $23 billion this year, but that’s less than a tenth of China’s social commerce market, per eMarketer.
Via Morning Brew