Amazon TikTok Bid :Too Little, Too Late?
Synopsis
Amazon has made a last ditch attempt to enter the Ticktock bidding war at the 11th hour. The US government set a deadline of April 5th for the mandatory sale of the Chinese platform…
Amazon has made a last ditch attempt to enter the Ticktock bidding war at the 11th hour. The US government set a deadline of April 5th for the mandatory sale of the Chinese platform citing national security concerns. Its bid however is not being treated with much credibility by US officials. Amazon actually has a surprising symbiotic relationship with Tiktok. Tikok influencers often promote and drive a lot of traffic to the ecommerce giant. While Amazon provides many TikTok users with a revenue stream by funnelling people to their store, creators can get a cut of those sales through Amazon’s affiliate partner program. With this in mind an Amazon Tiktok bid is not surprising. What is surprising is how late it seems to be.
The Tiktok Saga
Last year, under the Biden administration a bipartisan bill was passed mandating that ByteDance must divest ownwersip in the company. This was then delayed by President Trump who extended the deadline until this upcoming April 5th. Since then a number of parties have attempted to throw their hat ring.
On Wednesday, President Trump met with senior White House officials to deliberate on TikTok's future. Sources close to the discussions revealed a potential plan that might bring in new U.S. investors, such as tech giant Oracle and private equity firm Blackstone, as part of a deal.
Another potential player is a company called Zoop, led by the founder of the adult entertainment platform OnlyFans. The company announced that it has submitted a bid to acquire TikTok’s U.S. operations. Zoop has also revealed that its proposal involves a partnership with a cryptocurrency foundation.
The Amazon Tiktock deal looks unlikely. Vice President Vance and other top officials involved in negotiating a broader TikTok deal aren’t taking Amazon’s offer seriously. The bid came at the last minute, just before the April 5 deadline when the pause on a Biden-era TikTok ban is set to expire. It is believed that The US government favour the Oracle and Blackstone bid which would allow them much more control and oversight.
Sources
The New York Times - Amazon Said to Make a Bid to Buy TikTok in the U.S.
CNN - Trump to weigh options for potential TikTok deal, sources say, with ban days away
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