22 hours Ago
Amazon has made a last-minute bid to buy TikTok outright, just days before a key US government deadline that will decide the fate of the app in the nation. According to The New York Times, Amazon made its bid in a letter to Vice President JD Vance and Commerce Secretary Howard Lutnick. However, several parties to the negotiations are not convinced of the sincerity of Amazon’s bid.
US Government Deadline Nears President Donald Trump , in his second term, will be reviewing the last offer regarding TikTok before the April 5 deadline. A US law passed in 2024 mandated that ByteDance, the China-based parent company of TikTok, must divest the app’s US operations by January 19 or face a ban. Trump extended the deadline by 75 days, giving the parties more time to negotiate, but the grace period is fast running out.
National Security Issues Regarding TikTok ByteDance’s ownership of TikTok has been a central source of controversy in Washington. Legislators are concerned that the Chinese government might use the platform for surveillance and influence operations, something both TikTok and ByteDance have rejected. In spite of these issues, several entities have shown interest in purchasing TikTok’s US operations.
Players in the TikTok Acquisition Race Amazon’s offer is the latest turn in an increasingly aggressive sale process. OnlyFans founder Tim Stokely’s startup, Zoop, teamed up with a cryptocurrency foundation to create a last-minute bid for TikTok. Private equity Blackstone is also in talks to join ByteDance’s non-Chinese shareholders, including Susquehanna International Group and General Atlantic, to fund a bid.
Moreover, US venture capital firm Andreessen Horowitz is being told to support an acquisition led by Oracle and other American investors. The negotiations here aim to shape a deal to reduce Chinese ownership in TikTok's US workings to bring it under the threshold of 20, as defined by US law. Amazon’s Strategic Move into Social Media Amazon’s interest in TikTok also follows its overall strategy in the video content and social media arena.
The tech company acquired the live-streaming service Twitch for almost US$1 billion in 2014 and tested short-form video with its since-shuttered Inspire feature. Purchasing TikTok would enable Amazon to reach a younger demographic and improve its e-commerce business. Doubt Surrounding Amazon’s Offer While its bid may have advantages, Amazon’s offer has come under scrutiny .
According to the New York Times, the individuals most involved in the negotiations have not viewed Amazon’s bid as a serious alternative. Amazon hasn’t commented, and neither ByteDance nor TikTok responded to questions regarding the bid. TikTok’s Destiny in Limbo As the April 5 deadline draws closer, everyone involved is facing mounting pressure to come to an agreement.
Trump has already said that his administration is negotiating with several parties over the sale of TikTok. Though he has indicated that there might be another extension, lawyers are saying that this could not necessarily have a solid legal foundation . With Amazon joining the bidding war and several acquisition attempts in the mix, TikTok’s future in the US is far from clear.
The next few days will be crucial to know if the popular social media application will have a new American owner or get banned from the nation..
