Walmart & Microsoft set to bid for TikTok for as much as $30 billion - Dexerto
Business

Walmart & Microsoft set to bid for TikTok for as much as $30 billion

Published: 27/Aug/2020 17:45

by Alice Hearing

Share


Walmart has revealed it will be teaming up with Microsoft in a bid to buy TikTok, amid ongoing confusion about the immensely popular app’s place in the US market.

Walmart now joins the list of several companies interested in buying the company, including Oracle.

Advertisement

TikTok has plans to sell its operations in Australia, New Zealand, the US, and Canada in a deal that is predicted to be worth $20-30 billion, as reported by CNBC, and the buyer could be announced in the next few days.

On August 6th, Trump signed an executive order that bans TikTok owners Bytedance from making any transactions in the US starting September 20th. This came after concerns grew about the app’s use of data, and its origin in the Chinese capital of Beijing. As tensions with China have grown, so have the suspicions of TikTok harvesting user data.

Advertisement
A smartphone with the TikTok logo is held in a person's hand.
Freepik.com
TikTok rapidly grew in popularity in 2019 and 2020

TikTok was formerly musical.ly and didn’t break into mainstream knowledge until 2019. Rapid and exponential growth over the course of 2019 and 2020 saw the app break into the top 10 most downloaded social media apps of the year.

A new wave of celebrities emerged from the new platform, who have amassed millions of followers, including Charli D’Amelio to Addison Rae. In addition, entire brands are being built on the back of TikTok fame.

It was previously reported that Walmart was working with Softbank to put in a bid for TikTok, which was resisted by the US government because a cloud technology backbone component was required. Walmart’s shares have grown 3% since it announced its joint bid with Microsoft.

Advertisement

In a statement, Walmart said: “We believe a potential relationship with TikTok US in partnership with Microsoft could add this key functionality and provide Walmart with an important way for us to reach and serve omnichannel customers as well as grow our third-party marketplace and advertising businesses.

“We are confident that a Walmart and Microsoft partnership would meet both the expectations of US TikTok users while satisfying the concerns of US government regulators.”

Earlier today, TikTok’s CEO Kevin Mayer announced his resignation following a leak reported by the Financial Times. His resignation was initially planned to coincide with news of  TikTok’s sale agreement, but it was pushed forward.

Advertisement
FIFA

EA removes FIFA 21 ad selling loot boxes to children after backlash

Published: 1/Oct/2020 5:30 Updated: 1/Oct/2020 5:47

by Bill Cooney

Share


September 30 update (9:30pm PT): EA has pulled the advertisement from all toy magazines, including the one shown in Smyths, promoting buying FIFA points in the lead-up to FIFA 21.

They have also apologized for not upholding their “responsibility we take for the experience of our younger players.”

Advertisement

“We take very seriously the responsibilities we have when marketing EA games and experiences in channels seen by children,” they told Eurogamer in a statement.

Earlier: EA is under fire after users on the internet posted pictures of advertisements for FIFA 21 in-game purchases placed inside a children’s toy magazine.

Advertisement

It’s that time of year again, the air is getting cooler, the holidays are fast approaching, and there’s a new FIFA game about to come out on October 6.

In the year 2020 it’s not strange at all to see ads for video games amongst other kinds of toys in your usual holiday catalogs (if you don’t already do all your shopping online). However ads for in-game transactions and not the games themselves are becoming more and more common, and people don’t seem to be too thrilled with the idea.

On Sept. 26 A Twitter account by the name of AllFifamistakes posted a picture from one of the latest in-store magazines for UK company Smyths Toys. The ad, for FIFA’s popular Ultimate Team mode, lists four steps for players to play FUT, with the second being “use FIFA points to open packs.”

Advertisement

As any good FUT player knows, FIFA Points are the digital currency that is used specifically for that mode to unlock player packs, which are basically random loot boxes containing player cards and other upgrades.

Enough arguments have been made for and against loot boxes being a form of gambling than we could list in a series of articles, but they are one of the most unpopular features in modern-day gaming, and seen as a way for companies to keep cashing in on consumers after the fork out the sticker price just to play the game.

The fact that it’s in a toy magazine where a kid will most likely see it and bother his or her parent about buying them FIFA Points for some player packs is what seems to have ticked most people off, with some accusing EA of promoting gambling to their younger fans. However, this isn’t even the first FIFA game to employ such marketing tactics.

Advertisement

As you can see above, EA SPORTS has been advertising using FIFA Points to open packs as part of their “four steps to FUT success” for at least a year now, with the exact same wording appearing on adverts for FIFA 20 back around holiday season 2019.

Like gambling itself, it doesn’t seem as though loot boxes will be going away any time soon no matter how unpopular they may be, but people obviously aren’t too fond of ads for them being waved under kids’ noses.

Advertisement