Amazon makes a last-minute bid to buy TikTok as deadline looms

Amazon has submitted a last-minute bid to acquire TikTok's U.S. operations. The popular video-sharing app faces a looming deadline to divest from its Chinese parent company, ByteDance, or face a nationwide ban. The offer was made in a letter addressed to Vice President JD Vance and Commerce Secretary Howard Lutnick, according to an administration official who spoke on condition of anonymity. 

The U.S. government has expressed longstanding national security concerns regarding TikTok's Chinese ownership, leading to legislation requiring ByteDance to sell its U.S. operations by April 5. President Donald Trump previously extended the original Jan. 19 deadline to allow more time for negotiations. 

Despite Amazon's bid, officials and industry analysts are skeptical about its viability due to the timing and lack of prior indications of interest. The New York Times first reported on Amazon's offer, noting various parties involved in the talks do not appear to be taking the bid seriously. 

Other companies have also expressed interest in acquiring TikTok's U.S. operations. Digital advertising platform AppLovin has shown preliminary interest, while Oracle – which currently provides cloud services to TikTok – is considered a potential buyer. Additionally, a consortium led by former Dodgers owner Frank McCourt and Reddit co-founder Alexis Ohanian has reportedly offered $20 billion in cash for the platform. 

An acquisition could lead to changes in data management practices, content moderation policies, and integration with the acquiring company's existing services. For instance, Amazon's ownership might result in enhanced e-commerce features within TikTok, leveraging the platform's influence to drive sales. However, such changes could also raise concerns about data privacy and the commercialization of user content. 

"Amazon is making it more convenient for customers to shop on social media by expanding in-app shopping on Facebook, Instagram, Pinterest, Snapchat and TikTok," said Amazon spokesperson Maria Boschetti. "In-app shopping with Amazon is available for select products advertised on these popular social media apps and sold by Amazon or by independent sellers in Amazon's store."

Consumer reactions to Amazon potentially acquiring TikTok are mixed. Some users express concerns about data privacy and the potential for increased commercialization. In contrast, others are optimistic about the integration of e-commerce features and the platform's continued availability in the U.S. Influencers and content creators are particularly attentive to how such a change in ownership might affect their reach and revenue streams. 

"If you look at Amazon acquiring that social platform—swallowing that whole Gen Z audience and that engagement, and integrating all their e-commerce and logistics and everything going into Amazon through TikTok—and that becoming the social e-commerce platform, that's huge," said Roee Zelcer, former head of sales and products and services at Tiktok. "And that could be a potential merger between the two. … That's an easy two plus two equals six."

Talking about the approach Amazon seems to have in bidding for ownership of TikTok - "If you can't beat 'em, join 'em," said Julian Reis, the CEO of SuperOrdinary. This company helps thousands of creators and brands grow through social commerce by scaling across platforms like TikTok, Amazon, and others.

The situation remains fluid as the April 5 deadline approaches. Vice President JD Vance has indicated efforts to secure an American buyer for TikTok are progressing well and staying on schedule. He expressed confidence in a positive outcome, stating during a Fox News interview the deal would be finalized before the deadline. 

As negotiations continue, the future of TikTok's U.S. operations hangs in the balance, with significant implications for users, creators, and the broader tech industry.