Amazon submits last-minute bid to buy TikTok, claims report – The Economic Times
Amazon has made a surprise bid for TikTok just days before the U.S. ban on the platform is set to take effect. This unexpected move could reshape the future of social media, e-commerce, and digital advertising in the U.S. But what does it mean for TikTok users, Amazon, and the broader tech landscape?
Amazon Steps Into the Battle
A Trump administration official revealed that Amazon sent a formal offer to Vice President JD Vance and Commerce Secretary Howard Lutnick, signaling its intent to acquire TikTok’s U.S. operations. This bid, first reported by The New York Times, comes amid growing concerns about national security and data privacy related to TikTok’s Chinese parent company, ByteDance.
President Donald Trump had previously paused the TikTok ban but emphasized that ByteDance must sell to an approved U.S. buyer before Saturday’s deadline. Now, with Amazon entering the picture, the stakes have skyrocketed.
Why Would Amazon Want TikTok?
Amazon is a powerhouse in e-commerce and cloud computing, but social media has always been a missing piece in its empire. If it acquires TikTok, Amazon gains instant access to:
- A massive user base: TikTok has over 150 million U.S. users, mostly young consumers—an audience Amazon wants to target.
- Advertising dominance: With TikTok’s ad revenue surpassing $10 billion annually, Amazon could supercharge its ad business and compete more aggressively with Google and Meta.
- Live shopping expansion: TikTok has been pushing live e-commerce, a trend Amazon could leverage to boost its own marketplace sales.
Who Else is Bidding?
Amazon isn’t the only player eyeing TikTok. Several tech giants and investors have also made offers:
- Oracle: The software company already has a 12.5% stake in TikTok Global and provides its cloud infrastructure.
- Blackstone: The private equity firm has shown interest as part of a consortium of investors.
- Perplexity AI: A rising AI startup proposed a merger with TikTok, promising to rebuild its algorithm with U.S. oversight.
- Billionaire Frank McCourt’s Consortium: Partnered with Reddit co-founder Alexis Ohanian, offering $20 billion.
- Employer.com’s Jesse Tinsley: Claims to have offered ByteDance over $30 billion.
- Reid Rasner, a Wyoming business owner: His bid is the highest at $47.5 billion.
Will the U.S. Government Approve Amazon’s Bid?
The Biden administration will closely scrutinize any deal involving TikTok. While Amazon’s American roots make it a strong contender, regulators might be wary of a tech giant gaining even more influence over consumer data and digital advertising.
Security concerns remain at the forefront. The FBI and FCC have long warned about ByteDance potentially sharing user data with the Chinese government—an accusation TikTok denies. If Amazon takes over, it will likely have to guarantee full compliance with U.S. privacy laws.
What Happens If No Deal Is Reached?
If ByteDance doesn’t sell by Saturday, TikTok could be shut down in the U.S. That would mean:
- Millions of creators losing their platform overnight.
- A massive shift of influencers and advertisers to YouTube Shorts and Instagram Reels.
- A potential legal battle if ByteDance challenges the ban.
The Bottom Line
Amazon’s bid for TikTok is a bold move that could redefine the social media landscape. If successful, it could integrate TikTok into its ecosystem, boosting its e-commerce, advertising, and content strategies. However, regulatory challenges and competing bids make the outcome uncertain.
Will Amazon become the new owner of TikTok, or will another player swoop in at the last minute? With the Saturday deadline looming, the tech world is watching closely.
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