Amazon's Surprise Bid For TikTok As U.S. Ban Threat Looms
Amazon has made a surprise bid to acquire TikTok as the app faces a potential U.S. ban due to its ties with a Chinese parent company. Despite skepticism about the seriousness of the bid, Amazon's proposal highlights ongoing negotiations regarding TikTok's future. The e-commerce giant has a vested interest in TikTok, as influencers drive sales to its marketplace. However, TikTok has stated it is not for sale, and it remains uncertain if any deal will comply with federal law.
Amazon.com Inc AMZN has made a surprise, last-minute bid to acquire TikTok in its entirety, just days before the popular video app faces a U.S. ban if it does not sever ties with its Chinese parent company, The New York Times reports.
What To Know: Despite Amazon's entry into the race, those involved in the discussions have expressed skepticism about the seriousness of its bid, according to sources familiar with the matter.
The e-commerce giant's proposal, reportedly submitted via an offer letter to Vice President JD Vance and Commerce Secretary Howard Lutnick, underscores the tense final negotiations over TikTok's future.
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Amazon has long had a financial stake in TikTok's ecosystem, as influencers on the platform frequently drive sales to its marketplace, earning commissions through affiliate links. However, Amazon's own attempt to replicate TikTok's success with its in-app video feature, Inspire, was quietly scrapped earlier this year.
While other major players, including Oracle Corp ORCL and Blackstone Inc BX, are exploring ways to restructure TikTok's U.S. operations, it remains uncertain whether Amazon's bid—or any deal—will satisfy federal law. TikTok, meanwhile, insists it is not for sale.
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