Reportedly, Amazon has entered a bid to buy TikTok at the eleventh hour, just days before the popular video-sharing app risks getting banned in the U.S.
Back in April, the former President Joe Biden put his signature on a law mandating ByteDance, the Chinese tech giant behind TikTok, to offload the platform to an American entity or face a countrywide prohibition.
The legislation was brought about by concerns over national security risks associated with TikTok’s Chinese ownership and outlined a deadline of January 19 for the app’s sale to avoid a ban.
TikTok went dark in the United States after the deadline passed without a sale.
However, hours after taking office, President Donald Trump signed an executive order delaying the federal ban on TikTok for an additional 75 days.
Saturday marks the end of Trump’s extension, and TikTok remains silent on a potential US sale.
Amazon made an eleventh-hour offer to acquire all of TikTok, The New York Times reported on Wednesday.
The bid came in the form of a letter addressed to Vice President JD Vance and Secretary of Commerce Howard Lutnick, the outlet reported.
But parties involved in the talks do not appear to be taking the e-commerce giant’s offer seriously, according to The New York Times.
TIKTOK’S SUITORS
Amazon now joins a list of billionaire powerhouses that have entertained a potential purchase of TikTok.
Tesla owner Elon Musk, who purchased X, then Twitter, for $44 billion in 2022, Los Angeles Dodgers owner Frank McCourt, and Shark Tank’s Kevin O’Leary are among the potential suitors.
Also in the mix are popular YouTuber MrBeast, whose real name is Jimmy Donaldson, software giant Microsoft, and Walmart.
A startup company operated by Tim Stokely, the founder of the adult content site OnlyFans, teamed up with the cryptocurrency foundation Hbar to submit a bid to buy TikTok, according to Reuters.
Zoop, the startup by Stokely and RJ Phillips that launched in 2022, and Hbar sent the proposal to the White House last week.
“Our bid for TikTok isn’t just about changing ownership, it’s about creating a new paradigm where both creators and their communities benefit directly from the value they generate,” Phillips, Zoop’s co-founder, told the outlet.
Zoop allows users to buy, sell, trade, and barter for what the platform calls “Digital Celebrity Collectibles.”
How would the TikTok ban work?
TikTok’s Chinese parent company, ByteDance, has until April 5 to sell the beloved app or it’ll be banned over national security concerns.
In April 2024, President Joe Biden signed a law giving ByteDance 9 months to divest TikTok due to concerns the Chinese government could spy on Americans and manipulate content on TikTok.
After winning the election, President Donald Trump extended the sale deadline to April 5. Vice President JD Vance was tasked with coming up with a plan to save the app.
If ByteDance doesn’t sell TikTok to a government-approved buyer by that deadline, app stores will be forced to stop distributing or updating TikTok.
Companies like Apple and Google would be banned from helping to keep TikTok going, essentially forcing the app to die out.
While TikTok likely won’t be removed from phones, it’ll slowly degrade without any upkeep and eventually become unusable.
The platform is a way for fans to connect with their favorite celebrities and join exclusive communities in the metaverse.
TRUMP’S TIKTOK PLEDGE
Trump has pledged to save TikTok despite calling the app “worthless” without a permit from the United States.
“I met with owners of TikTok, the big owners, it’s worthless if it doesn’t get a permit,” Trump told reporters at the White House on January 21.
“It’s not like you can take the US. The whole thing is worthless. With a permit it’s worth like a trillion dollars.
Who is in the bid to purchase TikTok?
Several potential suitors have lined up in an attempt to buy TikTok, as the short-form video app faces a April 5 sale deadline.
Companies interested in TikTok:
- Amazon
- Microsoft
- Walmart
- Oracle
- Rumble
Entrepreneurs:
- X owner Elon Musk
- Shark Tank investor “Mr. Wonderful” Kevin O’Leary
- Tech businessman Jesse Tinsley
- Los Angeles Dodgers owner Frank McCourt
- Former Activision Blizzard CEO Bobby Kotick
- OnlyFans founder Tim Stokely
“So, what I’m thinking saying to somebody is buy it and give half to the United States of America and we’ll give you the a permit and they’ll have a great partner, the United States.”
Trump is expected to discuss TikTok’s fate at an Oval Office meeting on Wednesday.
In March, Trump said that officials in his administration had been in contact with four different groups about a possible sale of the app.
“We’re dealing with four different groups, and a lot of people want it, all four are good,” he told reporters onboard Air Force One.
Business analysts estimate a TikTok sale could be worth as much as $50 billion, according to Reuters.
The platform is home to about 115 million monthly mobile users in the United States.
