“Sociable” is the latest commentary on important social media developments and trends from industry expert Andrew Hutchinson of Social Media Today.
The clock is ticking on TikTok, with the deadline for its sale to a U.S.-based company fast approaching, which will see it either sold off, or booted out of America, potentially this week.
And with just days remaining, it seems that Amazon has made a last-minute pitch to acquire the app, as part of its expanded online shopping vision.
As reported by The New York Times, Amazon has presented an offer to the Trump administration, in the hopes of taking on the app, which counts 170 million U.S. users. The view would seemingly then be that Amazon could use TikTok as a vehicle to expand its product listings, and generate more sales via the platform.
Walmart had a similar idea when it joined a bid to acquire the app the last time the U.S. government tried to force a TikTok sale back in 2020, with Walmart reportedly seeking to seize on its product promotion potential to drive more sales.
TikTok has significant potential in this regard, with the Chinese version of the app (Douyin) generating almost $500 million in product sales last year, though Western consumers have been less interested in shopping in the app. But even so, TikTok’s in-app sales are rising, and Amazon could seize on this, while also expanding its reach and influence.
Worth noting too that Amazon actually tried to create its own TikTok clone in 2022.
As such, it makes a lot of sense for Amazon to make a play for the app, though right now at least, it doesn’t seem like it’s in the race.
As per NYT:
“Various parties who have been involved in the talks do not appear to be taking Amazon’s bid seriously. The bid came via an offer letter addressed to Vice President JD Vance and Howard Lutnick, the commerce secretary, according to a person briefed on the matter.”
So who is in the race?
Well, Oracle remains the lead bidder, with the company’s links to Trump (Trump and Oracle CEO Larry Ellison are friends), and its working relationship with TikTok (Oracle already supports TikTok’s U.S. infrastructure) seemingly best-positioning it to facilitate a deal that will please both the White House and the company’s Chinese ownership.
Whether the Chinese government will approve is another questions, while there are also various intricacies within the Foreign Adversary Controlled Applications Act, the bill relating to TikTok’s U.S. ownership, that will make any deal complex.
President Trump is reportedly meeting with top White House officials today to discuss the deal. Trump has repeatedly stated that he’s confident that they will work out a solution before the extended April 4 deadline. And if not, Trump has said that he’ll look to extend the deadline once again.
Which is also legally complex, but extending the deadline in the first place was already on shaky legal ground, so…
Essentially, we should find out very soon whether TikTok will be banned in the U.S. this week, though that still seems unlikely.
