Amazon has made a last-minute attempt to purchase TikTok, according to sources familiar with the process. The popular video-sharing app has a Saturday deadline to change ownership to face a ban in the United States. Three people familiar with the matter said the company had put in a bid as it races against time to change from its Chinese ownership.
The individuals mentioned that the parties involved in the talks are not taking the bid seriously. A person familiar with the matter also noted that the offer came through a letter addressed to Vice President JD Vance and Commerce Secretary Howard Lutnick. The sources mentioned that the deal could see a group of investors jump on it, noting that it is unclear if such a structure will satisfy the conditions of federal law.
Blackstone wants a stake as Amazon enters the bidding
The video application, boasting 170 million users in the US has become the go-to hub for retail advertising for firms like Amazon, with the firms using influencers to advertise their products. Despite many firms having their TikTok Shop, they still pay influencers a cut on transactions that people make after buying through their links.
Amazon also tried to make its short video feed called Inspire, which shared similarities with TikTok but was considered unsuccessful at attracting shoppers, so the company removed it from the app this year.
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.