Amazon has launched a last-minute bid to acquire TikTok’s entire U.S. operations, The New York Times reported. The move comes ahead of a deadline for the Chinese app to separate from its parent company, ByteDance, or face a U.S. ban.
Sources from the U.S. media report that the purchase proposal was presented in a letter addressed to J.D. Vance, Vice President of the United States, and Howard Lutnick, Secretary of Commerce. So far, neither party has denied nor confirmed the information.
TikTok could be banned in the United States as early as this week. Former President Joe Biden signed the Protecting Americans from Apps Controlled by Foreign Adversaries Act last year. This legislation argues that the social media platform maintains ties to the Chinese government, posing a threat to national security and the privacy of American citizens.
After assuming his second presidential term, Donald Trump signed an executive order extending the regulatory framework for 75 days. The extension expires next Saturday, April 5. Despite the interest of several companies and business owners in acquiring the app, the transaction required by the regulations has not yet been finalized. “Amazon is believed to be the highest-profile bidder for the company,” according to The New York Times.
The short-form video platform has become a pillar of the e-commerce giant’s promotion and conversion strategy, following its failed internal efforts to capitalize on its shoppers’ engagement on social media. In 2022, Amazon launched Inspire, an attempt to replicate TikTok’s features within its app. However, the initiative was unsuccessful and was discontinued a few months ago.
In August 2024, Amazon signed a partnership with TikTok, allowing users to purchase Amazon.com products directly from the Chinese app. According to Forbes, as of last year, TikTok accounted for 5% of Amazon’s overall advertising spending.
Meanwhile, consulting firm Marketplace Pulse estimated that Amazon’s third-party logistics business grew 70% by the end of last year, noting that “TikTok is likely the key driver of that growth.” Analysts suggest that these pre-existing business relationships could be a determining factor in a potential merger.
Donald Trump has repeatedly promised to save TikTok. In recent months, he has held talks with various organizations and business leaders about a possible purchase of the app. This week, he assured that the transaction will be completed by next Saturday. CBS News and Bloomberg reported that the president and his team are considering a deal that would include Oracle, Blackstone, and possibly other investors in a joint venture. The proposal will be discussed at a White House meeting scheduled for this Wednesday.
However, ByteDance has repeatedly reiterated that TikTok is not for sale. The platform’s continued presence in the U.S. market would depend on approval from Chinese trade regulators. The Chinese government has indicated it would not approve the transaction and has imposed export controls on the company’s recommendation algorithm, considered one of its key assets.