Walmart would be crazy to chase one in TikTok.
TikTok is obsolete as a platform for an e-commerce platform for Internet streaming services.
ByteDance, the owner of TikTok, operates a platform in China, “Douyin”.
Given reports that ByteDance is cooperating with the Communist Party of China (PCCh) and Chinese intelligence, there will have to be tactics to keep american visitors’ knowledge away from the PCCh’s servers.
NEW YORK (August 28) – Walmart (WMT) is expected to abandon plans to bid to purchase TikTok in partnership with Microsoft (NASDAQ: MSFT).
As with many things in the Middle Kingdom under his communist rule, not everything is what it seems.In fact, promote TikTok’s U.S. operations.Possibly it would be a sham in the component of the company that operates TikTok, as well as in the Chinese sister edition of the application., Douyin (抖 音 dǒ uyon). The latter has an amazing generation and is much more positioned for e-commerce than TikTok.
Walmart announced this week that it plans to subscribe to Microsoft to purchase the TikTok media video transmitter online.The announcement, which passed the ticker on August 27, raised Walmart’s shares by 7.7% from August 26 near today’s close.
The conventional wisdom is that TikTok will be valuable to Walmart in the same way that the Home Shopping Network intended to increase retail sales in the 1980s and how Facebook and Twitter allowed ads classified with clicks on retailers’ social networking sites.
In addition, Walmart hopes to purchase an Internet video transmitter that will allow you to access a higher-income millennial demographic that makes up the majority of TikTok users, as shown here:
But as all social media fans know, “the next big news” on social media can be just around the corner.The most popular social media platforms can be subsumed by increased coding or simply because they are no longer fashionable (MySpace, anyone?)
“While still very similar to TikTok, Douyin is more complex than its global counterpart, that is, in terms of e-commerce.With 3 clicks on Douyin, you can buy a product presented in a video; you can book a hotel in an ebook after watching a video filmed there; you can take virtual tours of a city’s department stores and restaurants, get coupons for those institutions, and later post geolocated video reviews.”
As you can see in this Twitter post, Douyin can also highlight a user’s face to view all videos in the user’s library or zoom in on a product that the user has presented in a video and purchase it from the Douyin app.
Clearly, this is a much better e-commerce platform than TikTok.
Investing in an outdated generation is never a smart idea.Ask those who have purchased stroller whip manufacturers.Or Yahoo.
One can easily believe that ByteDance ended the acquisition of Walmart-TikTok by signing an exclusive license agreement for its Douyin platform with Amazon (NASDAQ: AMZN), Target (NYSE: TGT) or some other major competitor, or even Walmart.(for more money, of course).
In any case, we think that the business style of a store owned by TikTok or Douyin is probably a mistake.A larger style would be ownership (or an exclusive license) through a multinational media corporation that can earn royalties for every sale made through the Controversial Radio Announcer Rush Limbaugh was rumored to have used a similar style when he aired his show in the 1980s.For the U.S. market, there are still security issues related to TikTok.
The Trump administration’s considerations of ByteDance’s security are transparent and more than reasonable.Like many PCC-led generation corporations in China, adding U.S. corporations, ByteDance is obsessed with the pcc’s demands.
“… China’s national intelligence law, by one interpretation, provides the government with the full strength to coerce corporations, and an independent judiciary, even extralegal pressures are very hard to resist.”
If Douyin were to enter the U.S. market, those security issues would be addressed again, as with TikTok with, perhaps, some other sale of ByteDance’s U.S. operations.But from now on, what’s preventing ByteDance from outperfiding Walmart deals?
An acquisition of Walmart from TikTok is a bad idea.Sharing recognition over more than two days based on the assumption that Walmart will adhere to the agreement is illusory.We Walmart will eventually abandon this concept once it completes its due diligence and we anticipate that the appreciation of the percentage value attributable to those assumptions will decrease.
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