Georg Petschnigg, WeTransfer's chief innovation officer and general manager in the Americas, explained why on CNBC's "Squawk Box."
Microsoft Has The Knowledge: Petschnigg said Microsoft has been looking to enter the social media landscape over the past two decades, most notably through its acquisition of LinkedIn. Coupled with Microsoft's acquisition of Nokia's mobile business, the tech giant has enough experience in managing and leading large-scale acquisitions.
The Walmart Component: Walmart's interest in TikTok is "brilliant" and will put some pressure on Amazon.com, Inc. (NASDAQ:AMZN), he said. Walmart can leverage its new property to help promote foot traffic through its newly acquired "real estate" empire of tens of millions of potential shoppers.
Who Should Be Worried? Microsoft and Walmart could gain control of TikTok that represents a "new class of software and a new class of entertainment" built around discovery, he said.