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TikTok Sale: Amazon Emerges as Surprise Bidder as Deadline Looms
Despite expectations of a major announcement, President Trump remained silent on a potential TikTok agreement. However, new contenders, including Amazon, have unexpectedly entered the bidding to acquire the popular video-sharing app before the looming Saturday deadline.
Amazon Submits Last-Minute Bid for TikTok
Amazon, led by billionaire founder Jeff Bezos, who has recently fostered closer ties with President Trump, reportedly submitted a late-stage offer letter. According to sources, the letter was addressed to Vice President JD Vance and Commerce Secretary Howard Lutnick.
The White House has acknowledged receipt of the offer on Wednesday. Details regarding Amazon’s financial proposal, such as the bid amount, have not been disclosed.
Doubts Cast on Amazon’s Seriousness as TikTok Buyer
Despite Amazon’s entry into the fray, key stakeholders involved in the ongoing TikTok sale negotiations reportedly “do not appear to be taking Amazon’s bid seriously,” according to a report by The New York Times.
Amazon has declined to comment on the matter. Representatives for TikTok have not yet responded to requests for comment.
AppLovin and OnlyFans Founder Also in the Running
Mobile technology company AppLovin has also submitted a bid to purchase TikTok. Additionally, a group that includes OnlyFans founder Tim Stokely has reportedly entered the bidding process.
Trump Silent on TikTok Deal Amidst Tariff Address
President Trump concluded an hour-long address on Wednesday afternoon concerning his reciprocal tariff plan without mentioning the potential TikTok sale.
However, it is anticipated that the president will meet with key advisors – including Vice President Vance, Secretary Lutnick, National Security Advisor Mike Waltz, and Director of National Intelligence Tulsi Gabbard – to discuss the evolving proposal.
Proposed Ownership Structure of “TikTok America”
Under the current administration’s proposal, a newly formed consortium of US investors, potentially including Andreessen Horowitz and Blackstone Group, would control approximately 50% of a restructured “TikTok America.” This entity would license the app’s algorithm from its current parent company, China-based ByteDance, according to reports from The Information on Wednesday.
Existing US Investors Expected to Retain Stake
Current US investors in TikTok, such as General Atlantic, Susquehanna, KKR, and Coatue, are expected to hold about one-third of the new company.
ByteDance to Maintain Minority Ownership
ByteDance is slated to retain a 19.9% ownership share in TikTok, slightly under the 20% threshold that would trigger restrictions on Chinese ownership as outlined in congressional legislation. President Trump is expected to assert to Congress that this structure fulfills the mandated standard for a “qualified divestiture.”
Skepticism Remains Among China Hawks
However, it remains uncertain whether this ownership structure will garner support from China hawks, such as Senate Intel Committee Chairman Tom Cotton, who have argued that ByteDance and the Chinese government should have no ongoing connection to the app.
Deadline Approaching for TikTok Sale
President Trump faces a Saturday deadline to secure an acceptable buyer for TikTok. This deadline was established after he issued an executive order delaying the enforcement of a federal law that would ban the app unless ByteDance divested its ownership. The president retains the option to extend the deadline further if a final agreement is not reached.
National Security Concerns Over TikTok Persist
US lawmakers and federal agencies maintain that TikTok poses a national security threat as long as its operations are linked to China. TikTok boasts over 170 million users in the United States.
Oracle’s Role and New Investors
Oracle, TikTok’s current cloud computing partner, is anticipated to assume a more prominent role. This expanded role is expected to ensure the security of TikTok’s algorithm against manipulation and to manage data pertaining to US users.
New investors have been approached to contribute to the deal and facilitate the buyout of Chinese investors, as reported earlier in the week.
Chinese Government Approval Still Required
Final approval from the Chinese government remains necessary. While China initially vowed to oppose any forced sale, their public stance has reportedly softened recently.
Tariff Relief as Potential Incentive
The president has raised the possibility of offering China some concessions on tariffs in exchange for reaching a TikTok agreement.