What to know

  • Amazon has made a last-minute bid to acquire TikTok as the app faces a U.S. ban deadline.
  • The bid comes amid national security concerns over TikTok's Chinese ownership.
  • Amazon aims to leverage TikTok's growing e-commerce influence to boost its business.
  • It remains unclear if the bid will be seriously considered by decision-makers.

Amazon has entered the race to acquire TikTok, making a surprise last-minute bid just days before the app faces a potential ban in the United States. The bid comes as TikTok's Chinese parent company, ByteDance, is under pressure to divest its U.S. operations due to national security concerns. The deadline for a sale or ban is set for April 5, though President Donald Trump has indicated he may extend it if necessary.

Amazon's interest in TikTok is reportedly driven by the app's growing role in e-commerce. TikTok has become a platform where influencers promote products, many of which are sold on Amazon. Despite Amazon's previous attempt to compete with TikTok through its short-form video feature, Inspire, the initiative failed to gain traction and was discontinued earlier this year. Acquiring TikTok could provide Amazon with a direct avenue to tap into the app's massive user base and e-commerce potential.

However, Amazon's bid is not the only one on the table. Other interested parties include Oracle, private equity firms, and individual investors like YouTuber MrBeast and Shark Tank host Kevin O'Leary. Despite the flurry of interest, TikTok has maintained that it is not for sale, and the Chinese government is likely to block any transaction involving the app's proprietary algorithm.

As the deadline approaches, the future of TikTok's U.S. operations remains uncertain. Whether Amazon's bid will be taken seriously or if alternative solutions, such as bringing in new U.S. investors, will emerge is yet to be seen. The coming days will be critical in determining the fate of one of the world's most popular social media platforms.

Via: GSMArena