In a dramatic turn of events, Amazon has submitted a bid to acquire TikTok as the threat of a US ban looms large, scheduled to take effect this Saturday. A senior official from the Trump administration disclosed the details on Wednesday, speaking on the condition of anonymity.
According to the official, Amazon expressed its interest in TikTok through a letter directed to Vice President JD Vance and Commerce Secretary Howard Lutnick. The New York Times was the first to report on this unexpected offer.
On Inauguration Day, President Donald Trump had temporarily halted the ban on TikTok, a move that bypassed a law upheld by the Supreme Court which argued that the ban was essential for national security. Under this law, TikTok’s parent company, the Chinese-owned ByteDance, is obligated to either sell the platform to an approved buyer or cease operations in the United States. While Trump has hinted at the possibility of extending the reprieve, he also indicated that he expects a resolution to be reached by Saturday.
As news of Amazon’s bid emerged, Trump was set to meet with senior officials to discuss the impending deadline for a potential TikTok sale. The platform has not commented on the recent developments, nor has Amazon provided further details regarding its offer.
Possible investors for TikTok have been a topic of discussion in recent months, with several companies expressing interest. Notable among them is Oracle, a software firm that announced in 2020 it holds a 12.5% stake in TikTok Global following its selection as the app’s cloud technology provider.
Additionally, the artificial intelligence startup Perplexity AI has proposed a merger with TikTok’s US operations. They argue that they are uniquely positioned to rebuild TikTok’s algorithm without leading to a monopoly, suggesting that an acquisition by a group of investors could allow ByteDance to retain control over the algorithm. They maintain that their approach would involve developing infrastructure in American data centers, ensuring compliance with domestic privacy standards and regulations.
Recent developments have seen a consortium led by billionaire businessman Frank McCourt, who has brought Reddit co-founder Alexis Ohanian on board as a strategic adviser. This group reportedly offered ByteDance $20 billion in cash for TikTok’s US operations. Another consortium led by Jesse Tinsley, founder of Employer.com, claims to be offering more than $30 billion, while Wyoming small business owner Reid Rasner has proposed approximately $47.5 billion.
Concerns regarding data privacy have also intensified, with both the FBI and the Federal Communications Commission warning that ByteDance could potentially share user data with the Chinese government, including browsing history, location data, and biometric identifiers. TikTok has consistently denied these allegations, stating that it has never shared user data with the Chinese authorities and would refuse such requests.
Trump, who boasts millions of followers on TikTok, has previously credited the platform with boosting his appeal amongst younger voters. During his first term, he adopted a more sceptical stance towards TikTok, issuing executive orders that banned dealings with ByteDance and the Chinese messaging application WeChat.
As the deadline for a TikTok acquisition approaches, industry insiders and observers will be keenly watching to see if Amazon’s last-minute bid will shift the landscape of this ongoing saga.
Source : euronews
