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Amazon Enters Race to Acquire TikTok as Deadline Looms

ByYasmeeta Oon

Apr 6, 2025

Amazon Enters Race to Acquire TikTok as Deadline Looms

TikTok, the viral video-sharing app at the center of national security concerns, has until April 5 to divest itself from its Chinese ownership or face a ban. In an intriguing twist, Amazon has thrown its own hat in the ring with a proposal to buy the whole thing outright. Sources indicate that the parties involved in the negotiations are not taking Amazon’s bid seriously, raising questions about the seriousness of the tech giant’s intentions.

Regardless of how this plays out, as the September deadline approaches, embattled TikTok’s parent company ByteDance faces mounting regulatory pressure to divest its U.S. operations. The seriousness of the crisis has drawn a diverse range of stakeholders. Interestingly, Andreessen Horowitz is currently under discussions to invest in TikTok as part of an Oracle-led bid. This consortium includes a number of American investors who would be allowed to purchase the application. Yet their interest speaks to the intensely competitive environment that exists today.

Trump’s Involvement and the Political Stakes

President Donald Trump will find out in person on Wednesday. To combat arbitrary tech censorship, they will be strategizing about TikTok’s future. Trump has indicated that he wants to see an actual deal in which ByteDance sells TikTok. He’s optimistic it will be completed well ahead of the April 5 cut-off. This recent meeting highlights the political pressures related to TikTok’s ownership and how it operates within the United States.

And indeed, current non-Chinese shareholders of ByteDance—including Susquehanna International Group and General Atlantic—are already moving to sue. They continue to scrounge for additional capital as they prepare their own bid for TikTok’s U.S. operations. Reports suggest that private equity firm Blackstone may soon be among these stakeholders as well. Their goal is to get the best financial footing in the transaction possible. By joining with ByteDance’s other non-Chinese shareholders, Blackstone would be looking to pool financial firepower in a growingly competitive bidding field.

Now enter Amazon with its own distinct and disruptive impact on the bidding war sweepstakes. Even with that progress, it remains to be seen if its proposal will find support amongst stakeholders. Even traditional investment firms—including big names like Andreessen Horowitz and Blackstone—are making the leap. With this much interest, competition is sure to be fierce come September 26, when the deadline closes.

What The Author Thinks

Amazon’s late entry into the bidding for TikTok introduces another layer of complexity into an already crowded field. While the proposal could potentially shift the balance in Amazon’s favor, the question remains whether stakeholders will take Amazon’s bid seriously or whether the involvement of established investment firms will win out. What is clear, however, is that TikTok’s future remains uncertain, and the competition for its U.S. operations is only intensifying.


Featured image credit: FMT

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Yasmeeta Oon

Just a girl trying to break into the world of journalism, constantly on the hunt for the next big story to share.

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