Amazon makes last-minute bid for TikTok amid US ban threat
What's the story
In a last-minute bid, Amazon has reportedly offered to buy TikTok from its Chinese parent company ByteDance.
The move comes as the popular short-form video platform stands on the verge of suspension in the United States.
It has until April 5 to sell, following a law passed last year that mandates ByteDance to sell TikTok's US operations or face an imminent ban.
Proposal details
Amazon's bid submitted to White House
Amazon's bid was submitted through a letter to Vice President JD Vance and Commerce Secretary Howard Lutnick.
The proposal comes at a time when TikTok's future in the US remains uncertain.
If ByteDance doesn't divest its American operations by the deadline, another potential shutdown could be on April 5.
However, some parties involved in the discussions don't seem to take Amazon's bid seriously due to its late submission, report the New York Times.
Strategic alliance
Amazon and TikTok's partnership
Last August, Amazon and TikTok entered a strategic partnership, enabling users of the latter to link their accounts with Amazon for seamless shopping without leaving the app.
The collaboration drew scrutiny from lawmakers over potential national security concerns.
Nevertheless, it highlights the growing relationship between the two tech giants amid regulatory pressures and market competition.
Market impact
Amazon's interest could influence other bidders
Even if Amazon's bid doesn't gain traction with the Trump administration, its interest could potentially sway other bidders to up their offers.
This could mean a higher price for TikTok, a rising competitor to Amazon's online retail business.
Even engaging in negotiations could give Amazon a glimpse into TikTok's financial performance and its marketplace, TikTok Shop.
Regulatory developments
Trump's decision on TikTok's US fate imminent
President Donald Trump could announce a decision on TikTok's future in the US as early as Wednesday.
Trump is likely to meet Vance and other top administration officials to discuss proposals to divest TikTok's US operations from ByteDance.
Oracle Corp., Blackstone Inc., and possibly other investors in a joint venture are also among potential buyers.
Mobile technology firm AppLovin has also shown interest in acquiring TikTok, sources familiar with the matter told CNBC.