In a surprising turn of events, Amazon has submitted a last-minute bid to acquire TikTok, the wildly popular short-video app, as it faces an impending deadline to sever ties with its Chinese owner, ByteDance. The bid, which was revealed on April 2, 2025, comes just days before an April 5 deadline set by the U.S. government, which mandates that TikTok must divest from Chinese ownership or face a ban in the United States.
According to a report by The New York Times, Amazon's offer was made through a letter addressed to Vice President JD Vance and Commerce Secretary Howard Lutnick. However, sources indicate that key parties involved in the negotiations do not appear to take Amazon's bid seriously. The White House has confirmed receipt of the offer, but Amazon declined to comment on the matter.
Shares of Amazon saw a spike, rising 1.3% following the news of the bid, which comes at a critical juncture for TikTok, which boasts over 170 million users in the U.S. President Donald Trump is scheduled to meet with top advisers in the Oval Office on the same day to discuss the app's future, including proposals for TikTok's existing U.S. investors to take majority control of a spun-off version of the company.
Trump has until April 5 to finalize a deal that will satisfy national security concerns surrounding TikTok, which has faced scrutiny over its ownership and potential ties to the Chinese government. The app has been under a temporary reprieve from a 2024 law that requires ByteDance to divest ownership, a law that was upheld by the Supreme Court.
Despite Amazon's late entry into the bidding war, other investors, including tech venture firm Andreessen Horowitz and private equity firm Blackstone, have also been approached to contribute to the deal. They could potentially help buy out Chinese investors as part of a broader effort to ensure TikTok's operations remain in the U.S. Oracle, already a key cloud computing partner for TikTok, may take on an increased role in managing U.S. user data and ensuring the algorithm is protected from manipulation.
While Amazon's bid highlights the urgency and complexity of the negotiations, it is not the first time a major retailer has expressed interest in TikTok. In 2020, Microsoft and Walmart attempted to acquire the app amid similar national security concerns. Analysts have noted that Amazon's acquisition of TikTok would make strategic sense, given the strong ties between social media and online shopping.
As the clock ticks down to the deadline, the stakes have never been higher. Trump has publicly expressed confidence that a deal will be reached, stating, "We have a lot of potential buyers. There's tremendous interest in TikTok. The decision is going to be my decision." However, he also acknowledged that the finer points of any agreement might take longer to finalize.
Amidst this backdrop, TikTok remains in a precarious position. The app's future hinges not only on the negotiations at hand but also on broader geopolitical tensions between the U.S. and China. The Biden administration's bipartisan legislation last year forced ByteDance to sell TikTok to a non-Chinese buyer or face a nationwide ban, a situation that has left the app in limbo.
As potential buyers scramble to present their offers, the landscape is changing rapidly. The upcoming meeting between Trump and his advisers is expected to shed light on the administration's strategy moving forward, as the fate of TikTok hangs in the balance. With both sides under pressure to reach a resolution, the next few days will be crucial in determining the future of this influential platform.
In conclusion, Amazon's late bid for TikTok underscores the fierce competition among investors to acquire the app as it navigates a complex web of regulatory challenges and national security concerns. The outcome of these negotiations will have significant implications not only for the app's millions of users but also for the broader tech landscape in the United States.
