NATIONWIDE — Retail giant Walmart confirmed that it is teaming up with Microsoft in a bid for the popular app TikTok.
The news, first reported by CNBC, was later confirmed by Walmart.
In a statement, the big-box retailer said, "We believe a potential relationship with TikTok US in partnership with Microsoft could ... 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," the company added.
Shares of Walmart jumped 5% after the news.
The move comes a day after CEO Kevin Mayer announced his resignation from the company amid pressure from the Trump Administration on the company's Chinese owners to divest of the app's U.S. interests.
In a letter to employees, Mayer said that his decision to leave comes after the "political environment has sharply changed." President Donald Trump issued an executive order banning TikTok unless the app's owner, ByteDance, sells its U.S. operations.
"I have done significant reflection on what the corporate structural changes will require, and what it means for the global role I signed up for," he said in his note to employees. "Against this backdrop, and as we expect to reach a resolution very soon, it is with a heavy heart that I wanted to let you all know that I have decided to leave the company."
Mayer joined the company in May after serving as Chairman of Walt Disney Direct-to-Consumer & International, a division of the Walt Disney Company. Mayer had multiple stints with Disney, beginning in 1993. He rejoined the company in 2005 as Executive Vice President, Corporate Strategy, Business Development, and Technology; he was an integral part of launching streaming service Disney+ and was involved in the company's previous purchases of Pixar, Marvel, LucasFilm and 21st Century Fox.
"We appreciate that the political dynamics of the last few months have significantly changed what the scope of Kevin’s role would be going forward, and fully respect his decision," TikTok said in a statement.
TikTok gained immense popularity through its fun, goofy videos and ease of use, and has hundreds of millions of users globally.
But its Chinese ownership has raised concerns about potential censorship of videos, including those critical of the Chinese government, and the risk Beijing may access user data.
Earlier this month, Trump ordered a sweeping but unspecified ban on dealings with the Chinese owners of consumer apps TikTok and WeChat as the U.S. heightens scrutiny of Chinese technology companies, citing concerns that they may pose a threat to national security.
The Associated Press contributed to this report.