Home Latest Insights | News Amazon Joins Race for TikTok as U.S. Ban Deadline Nears—But Another Extension Seems Likely

Amazon Joins Race for TikTok as U.S. Ban Deadline Nears—But Another Extension Seems Likely

Amazon Joins Race for TikTok as U.S. Ban Deadline Nears—But Another Extension Seems Likely

Amazon has submitted a last-minute bid to acquire TikTok, a Trump administration official revealed on Wednesday, just days before a U.S. ban on the popular social media platform is set to take effect.

The bid adds another twist to the high-stakes negotiations over TikTok’s fate in the United States.

The official, who spoke on the condition of anonymity because they were not authorized to comment publicly, confirmed that Amazon’s offer was communicated in a letter to Vice President JD Vance and Commerce Secretary Howard Lutnick. The New York Times was the first to report on the bid.

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With the Saturday deadline fast approaching, President Donald Trump has remained firm on his demand that TikTok’s Chinese owner, ByteDance, must sell the platform to an approved U.S. buyer or face a nationwide ban. However, despite his strong rhetoric, signs are emerging that the deadline may be extended once again, as no deal appears to be close to completion.

Amazon has so far declined to comment on its bid, while TikTok has not responded to inquiries about the potential sale.

Will the Ban Deadline Be Pushed Again?

Although Trump has stated that TikTok must be sold before Saturday, insiders suggest that a last-minute extension is increasingly likely. This wouldn’t be the first time the U.S. government has set a firm deadline, only to push it back when it became clear that negotiations were still ongoing.

Over the past few months, several potential buyers have expressed interest in acquiring TikTok’s U.S. operations, but no deal has materialized. The complexity of the negotiations—ranging from valuation disputes to national security concerns—has slowed the process, making it difficult for any acquisition to be finalized before the weekend.

While Trump has framed the Saturday deadline as a hard stop, political analysts suggest that extending it could serve as a strategic move. The president could use the looming threat of a ban to extract further concessions from ByteDance while avoiding immediate economic fallout from shutting down a platform that boasts over 150 million U.S. users.

Amazon’s Entry into the Bidding War

Amazon’s bid introduces a new dynamic into the negotiations, raising questions about how the e-commerce giant would integrate TikTok into its broader business. The company has been aggressively expanding its digital advertising and streaming operations, making TikTok an attractive asset. However, Amazon’s involvement also increases regulatory scrutiny, as many believe that allowing the tech behemoth to acquire TikTok could create antitrust concerns.

Amazon’s bid puts it in competition with several other companies and investment groups that have been circling TikTok for months.

Among the strongest contenders is Oracle, which already holds a 12.5% stake in TikTok Global after securing a deal in 2020 to provide cloud services for the platform. Blackstone, one of the world’s largest investment firms, has also expressed interest in acquiring TikTok’s U.S. operations.

Meanwhile, AI startup Perplexity AI has proposed a merger with TikTok’s U.S. operations, arguing that it is “singularly positioned to rebuild the TikTok algorithm without creating a monopoly.” The company insists that its approach would ensure TikTok’s infrastructure remains under American oversight, aligning with U.S. privacy regulations.

A separate consortium led by billionaire businessman Frank McCourt has reportedly offered ByteDance $20 billion in cash, with Reddit co-founder Alexis Ohanian advising the group. Other investors include Jesse Tinsley, founder of Employer.com, who has proposed a bid exceeding $30 billion, and Wyoming-based entrepreneur Reid Rasner, who has offered approximately $47.5 billion.

The National Security Concern At The Center of Push for TikTok’s Sale

The fight over TikTok’s ownership has been driven by U.S. national security concerns. Both the FBI and the Federal Communications Commission (FCC) have warned that ByteDance could be compelled to share American user data—including browsing history, location, and biometric identifiers—with the Chinese government. TikTok has denied these allegations, maintaining that it has never shared data with Beijing and would not do so if asked. The U.S. government has yet to present concrete evidence that ByteDance has engaged in such activities.

While the national security argument has been central to Trump’s push for TikTok’s sale, the issue has also taken on a political dimension. Trump has millions of followers on TikTok and has credited the platform with helping him connect with younger voters. His decision to temporarily pause the ban on Inauguration Day was widely seen as an attempt to avoid alienating young supporters.

However, his long-term position on the app remains uncertain. During his first term, he took a hardline stance, issuing executive orders aimed at banning both TikTok and the Chinese messaging app WeChat. Now, with re-election looming, Trump faces a delicate balancing act—maintaining a tough stance on China while not shutting down a platform that has become a key tool for political engagement.

With just days remaining until the ban deadline, the pressure is mounting for a resolution. If ByteDance refuses to sell TikTok, the U.S. government will be forced to decide whether to proceed with the ban, extend the deadline, or seek another legal workaround.

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