According to people familiar with the matter, Amazon has made a last-minute bid to buy TikTok. The popular video app has a Saturday deadline to change its ownership structure or face a ban in the United States.
Three people familiar with the matter revealed that Amazon made a last-minute offer to buy TikTok amid an April deadline to change the video app’s ownership model. The company faces a ban in the United States unless it changes its ownership structure to that of its Chinese owner.
The individuals noted that various parties involved in the talks didn’t appear to be taking Amazon’s bid seriously. A person briefed on the matter also highlighted that Amazon’s offer came through an offer letter addressed to Vice President JD Vance and Commerce Secretary Howard Lutnick.
The people familiar with the matter acknowledged a potential deal that could involve bringing on a number of new U.S. investors, such as technology giant Oracle and private equity firm Blackstone. They also stated that it wasn’t clear whether such a structure would satisfy the conditions of federal law.
The video app, with roughly 170 million users in the U.S., has become a major hub for retail shopping in firms like Amazon, with influencers recommending products to viewers. Despite having its own e-commerce operation known as TikTok Shop, many influencers are paid a cut of transactions after they encourage people to buy on Amazon.
The e-commerce giant also tried making its own Short-Form video feed, called Inspire, which was similar to TikTok but was considered unsuccessful at attracting shoppers, so the company removed it from the app this year.
Blackstone also wants a stake in TikTok
Blackstone is also considering joining ByteDance’s existing non-Chinese shareholders, led by Susquehanna International Group and General Atlantic, to contribute fresh capital to TikTok’s U.S. business. Last month, the president mentioned that his administration was in touch with four different groups about the sale of TikTok but didn’t identify them. Amazon’s shares surged by 1.3% in a volume spike caused by the announcement.
Venture capital firm Andreessen Horowitz also revealed discussions about investing in TikTok as part of the deal. Microsoft and Walmart also made similar bids for the video app in 2020, when it was first pressured to sell to American owners.Â
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