Amazon Makes Bid for TikTok, But White House Remains Unmoved

Amazon.com Inc. has submitted a proposal to acquire the U.S. operations of the social video platform TikTok from its Chinese owner, ByteDance Ltd., according to Bloomberg. The company reportedly sent a letter outlining its bid to Vice President JD Vance, who is spearheading efforts to facilitate a sale, as well as Commerce Secretary Howard Lutnick. However, despite Amazon’s offer, the White House is not taking the bid seriously, a source familiar with the matter told Bloomberg.

While Amazon declined to comment on the bid, its interest in TikTok could nonetheless impact the ongoing sale negotiations. Even if its bid fails, Amazon’s participation might increase the perceived value of TikTok’s U.S. operations, potentially pushing rival bidders to raise their offers. Additionally, Amazon’s involvement gives it a closer look at TikTok’s financial performance, particularly its eCommerce feature, TikTok Shop, which is emerging as a competitor to Amazon’s online retail business.

President Donald Trump is expected to meet with Vance and other top officials to review proposals for divesting TikTok’s U.S. operations. According to Bloomberg, the administration is considering multiple options, including a joint venture that could involve Oracle Corp., Blackstone Inc., and other investors. Trump faces an April 5 deadline to finalize a decision on TikTok’s fate, per a law passed by a bipartisan group of lawmakers and signed by former President Joe Biden last year. The legislation was driven by concerns that TikTok’s Chinese ownership could allow the Chinese government access to U.S. user data.

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The deadline for the sale has already been extended once from its original date of January 19, and Trump has signaled that he may be willing to delay it further if necessary. However, even if the administration approves a proposal, finalizing a deal remains complicated. ByteDance, along with the Chinese government, would need to approve any sale, and it is unclear whether they have been engaged in the negotiations, Bloomberg reported.

Meanwhile, billionaire Frank McCourt remains in the race as another potential bidder. In an interview with Bloomberg Television, McCourt acknowledged that while his offer to acquire TikTok is still active, he is skeptical that any deal will be completed before the April 5 deadline.

“I personally think that’s highly unlikely, but we’ll know more this afternoon or certainly by the 5th,” McCourt said.

Source: Bloomberg