Amazon has recently submitted a bid to acquire TikTok, as reported by a former Trump administration official, amid an impending US ban on the popular platform. The bid was communicated in a letter addressed to US Vice President JD Vance and Commerce Secretary Howard Lutnick, although details surrounding the offer remain vague, and Amazon has chosen not to comment on the matter. The situation arises just as President Donald Trump had earlier offered a temporary reprieve to TikTok on Inauguration Day after the Supreme Court upheld a law mandating the sale of the app by its Chinese parent company, ByteDance, or face removal from the US market.
Under the stipulations set forth in the law, TikTok is under pressure to secure a buyout by an approved company within a looming deadline, which Trump indicated could lead to a deal by the end of the week. While it is not yet clear if ByteDance intends to agree to a sale, interest from various potential bidders has surfaced in recent months. Notably, software company Oracle and investment firm Blackstone are among those considering offers, with Oracle having previously acquired a stake in TikTok Global in 2020.
Additionally, a merger proposal was brought forth by artificial intelligence company Perplexity AI, suggesting that they could partner with TikTok’s US operations while ensuring American control over data centers, thus aligning with local privacy regulations. Meanwhile, a consortium backed by billionaire Frank McCourt, which includes Reddit co-founder Alexis Ohanian, is reportedly ready to make an offer of $20 billion USD for TikTok’s US platform. Other investors, such as Jesse Tinsley and Reid Rasner, have expressed intentions to bid even higher, with reported offers exceeding $30 billion and $47.5 billion respectively.
Concerns persist regarding user data and privacy, with warnings from both the FBI and the Federal Communications Commission about potential data sharing between ByteDance and the Chinese government. TikTok has repeatedly denied such allegations, asserting compliance with US privacy standards.
As negotiations evolve, the stakes remain high for ByteDance and potential buyers, as they navigate legal, economic, and privacy landscapes to secure TikTok’s future in the US. The outcome of these bids could significantly reshape the competitive landscape of short-form video and social media platforms.