About the Microsoft and Walmart Acquiring TikTok Deal

Last Updated on August 27, 2020

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.

Source: Microsoft working with Walmart on TikTok deal – Axios

One of the main reasons TikTok has taken off with influencers, soccer moms, niche businesses, and aspiring dance stars here in the US is that it “feels” like an indie app that isn’t owned by Facebook or Google.

TikTok very much has that Instagram feel from about 2013 (I remember when an 8th grader first showed Instagram to me and explained why it was so much better than Facebook or Twitter and wasn’t owned by a big company).

With the ongoing speculation that Oracle is somehow involved in the attempts to acquire TikTok from the Chinese company ByteDance at our current administration’s behest, the CEO resigning last night, and now the two COOLEST brands in the United States… Microsoft AND Walmart!… I just don’t see how TikTok retains that feeling. Especially if this odd consortium of mega-companies turns it into an “e-commerce app for creators and users.”

I think we’ll look back on this period a few years from now and use it as a cautionary tale for huge companies looking to make a play in a hot space.

Yes, there are some previous examples of successful transitions for creative-focused apps and services that kept the mojo after being gobbled up, such as when Google acquired YouTube for $1billion in the mid-2000’s. But then, Google wasn’t quite the behemoth it is now, and YouTube sorely needed the backing of a Google to stay on the web given the legal and logistical load it was rapidly taking on. But then consider services like Flickr or Tumblr that had a diehard communities before being subsumed into the Yahoo! debacle and mismanaged into oblivion.

All that to say, I don’t see how Oracle / Microsoft / Walmart pulls this off and pivots TikTok into a successful “Made in America!” platform while keeping the hotness of the app.

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