TLDR
- Amazon made a last-minute bid to purchase TikTok as a US ban on the platform is set to take effect Saturday, April 5.
- The offer was made in a letter to Vice President JD Vance and Commerce Secretary Howard Lutnick.
- President Trump gave TikTok a 75-day reprieve on Inauguration Day, but the deadline is approaching.
- Oracle has been considered the likely favorite to take over TikTok’s US operations with backing from investors.
- Amazon stock gained 1.6% following the New York Times report about their bid.
Amazon has made a surprise entry into the race to acquire TikTok, submitting a last-minute bid as the deadline for a potential US ban on the popular video-sharing platform approaches this Saturday.
The unexpected offer was disclosed on Wednesday by a Trump administration official who was not authorized to comment publicly. The official revealed that Amazon sent a letter expressing interest in acquiring TikTok to Vice President JD Vance and Commerce Secretary Howard Lutnick.
This development comes just days before the April 5 deadline when TikTok could face a ban in the United States. The platform currently serves more than 170 million US users.
Amazon has declined to provide any official comment on the reported bid.
Battle for Social Media Giant
When President Donald Trump took office on January 20, he issued a 75-day reprieve for TikTok, delaying enforcement of a 2024 law that would ban the app unless its Chinese parent company ByteDance divests ownership.
That law, which was unanimously upheld by the Supreme Court, cited national security concerns as the basis for requiring the sale or shutdown of TikTok’s US operations.
Both the FBI and Federal Communications Commission have warned that ByteDance could potentially share user data with the Chinese government. This includes sensitive information like browsing history, location data, and biometric identifiers.
TikTok has consistently denied sharing user data with China. The company maintains it has never done so and would not comply if asked.
The US government has not provided concrete evidence of data sharing between TikTok and the Chinese government.
Amazon’s Strategic Interest
Amazon’s stock rose 1.6% to $195.27 following the New York Times report about their bid. The stock had been in a slump since early February.
Market analysts suggest Amazon’s interest makes strategic sense given the growing connection between social media and e-commerce.
TikTok already operates its own e-commerce platform that uses its short-video app to drive sales. Amazon has an existing advertising partnership with TikTok, which could provide a foundation for further integration.
However, sources close to the negotiations claim the parties involved “do not appear to be taking Amazon’s bid seriously,” according to the New York Times report.
One potential obstacle for Amazon’s bid is that the company is already facing antitrust scrutiny. Regulators might view an acquisition of TikTok’s massive user base as further consolidation of market power.
Meanwhile, Oracle has been widely considered the frontrunner to take over TikTok’s US operations. The enterprise software company reportedly has backing from both new and existing US investors.
President Trump, who now has millions of followers on TikTok, credits the platform with helping him gain traction among young voters during his recent campaign.
This represents a shift from his first term, when Trump took a more skeptical view of TikTok. At that time, he issued executive orders banning dealings with ByteDance and the owners of WeChat, another Chinese messaging app.
The President was scheduled to meet with senior officials on Wednesday to discuss the approaching deadline for a TikTok sale.
Trump has suggested he might further extend the pause on the ban. However, he has also indicated he expects a deal to be finalized by Saturday’s deadline.
The outcome remains uncertain as the clock ticks down toward the April 5 deadline.
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