Amazon Makes Last-Minute Bid for TikTok as Deadline Approaches
Amazon has submitted a surprise bid to acquire TikTok just days before a key April 5 deadline set by President Trump for the app to find a U.S.-based owner or face potential restrictions.
According to reports from the New York Times, Amazon sent a letter to Vice President JD Vance and Commerce Secretary Howard Lutnick expressing interest in acquiring TikTok in its entirety. The move comes as other major players like Oracle and Walmart are also in discussions to acquire the popular video-sharing platform.
“Amazon has sent a letter to Vice President JD Vance and Commerce Secretary Howard Lutnick expressing last-minute interest in acquiring TikTok in its entirety, according to the New York Times,” a source familiar with the matter stated.
However, the bid faces significant challenges. Various parties involved in the talks do not appear to be taking Amazon’s offer seriously, viewing it as a last-ditch effort that may complicate the ongoing negotiations.
The deadline set by President Trump stems from ongoing national security concerns regarding TikTok’s Chinese ownership and potential data sharing with the Chinese government. A White House official noted, “President Trump will consider a final proposal related to TikTok ahead of an April 5 deadline for the app to find a non-Chinese buyer or face a ban in the country.”
TikTok, owned by Beijing-based ByteDance, has faced scrutiny over its data security practices and the potential for algorithm manipulation by the Chinese government. Previous divestment talks with Oracle in 2020 failed partly because ByteDance would not transfer TikTok’s source code to the U.S.
The platform’s significant user base in the United States adds weight to the acquisition talks. “TikTok hosts approximately 170 million U.S. users, counting as nearly half of the American population. The platform has evolved into a major ecommerce channel, generating millions in daily sales,” according to industry reports.
Any change in ownership could have far-reaching implications for TikTok’s market strategy, user experience, and data security. It may also impact competitors in the social media space, such as Instagram and YouTube.
TikTok’s global revenue reached $36.9 billion in 2023, with projections suggesting it will hit $56 billion by 2025, highlighting the platform’s significant market value and potential for growth.
As the April 5 deadline approaches, all eyes are on the ongoing negotiations and potential outcomes. The regulatory environment, especially concerning data privacy and national security, will play a crucial role in shaping TikTok’s future operations under new ownership.
