Sam Walton could very well be smiling down on one of his disciples right now after hitting a dinger out of the ballpark.
Walmart (WMT) CEO Doug McMillon is in fact that baseball smasher. In arguably his most important deal (and there have been quite a few to speak of) since taking over as CEO in February 2014, McMillon over the weekend signed off on a partnership with Oracle that will find it as an investor in social media juggernaut TikTok. Walmart didn’t disclose how much it will pay for its 7.5% stake in the new TikTok Global (reports have Walmart and Oracle shelling out a combined $12 billion for their total 20% stake).
But the dollar amount doesn’t really matter, what does is that McMillon — who will be one of five executives on TikTok Global’s board — ponied up. Really, who gives a darn? What, you want Walmart to take those billions of dollars and invest it in opening 500 Supercenters by 2025 in the saturated U.S. retail market? If you are a Walmart shareholder of course that’s not what you should want. That would be an awful use of shareholder capital.Yahoo Finance