- Amazon.com (AMZN) shares climbed over 2% to $196.45 after the New York Times reported its last-minute bid to acquire TikTok, though parties involved in the talks doubt its seriousness, ahead of President Trump’s Wednesday review of a final proposal.
- A 2024 law requires ByteDance to sell TikTok by January 19 due to security risks from its Chinese ownership, with Trump’s 75-day delay from January 20 giving the app until April 5 to find a U.S. buyer or face a ban.
- Amazon’s offer, sent to Vice President JD Vance and Commerce Secretary Howard Lutnick, enters a competitive field where Trump has noted discussions with four other groups, as nearly half of Americans await TikTok’s fate.
Shares of Amazon.com (AMZN) surged more than 2.50% to an intraday high of $196.45 following a report from the New York Times that the e-commerce titan has submitted a last-minute bid to acquire the short-form video app TikTok, a move that underscores Amazon’s ambition to expand its digital footprint. The offer, detailed in a letter to Vice President JD Vance and Commerce Secretary Howard Lutnick, comes as TikTok faces an April 5 deadline set by President Donald Trump to secure a non-Chinese buyer or be banned in the U.S. While Amazon’s stock reflects investor intrigue, the New York Times notes that various parties involved in the negotiations are skeptical of the bid’s seriousness, casting doubt on its viability amidst a high-stakes battle for the app’s future.
The backdrop to Amazon’s unexpected proposal is a 2024 law, passed with strong bipartisan backing, mandating that TikTok’s parent company, ByteDance, divest the platform by January 19 due to national security concerns tied to its Chinese ownership. Washington has long argued that ByteDance’s control renders TikTok a potential tool for Beijing to harvest data on Americans – nearly half of whom use the app – or to orchestrate influence campaigns against U.S. interests. Trump, who assumed his second term on January 20, issued an executive order delaying the law’s enforcement by 75 days, providing a temporary reprieve for TikTok and opening a window for suitors like Amazon to enter the fray, even as Trump revealed last month that his administration was engaging with four other groups about a possible sale.
Amazon’s bid, while bold, arrives in a crowded and contentious landscape where skepticism abounds. The New York Times report, citing three people familiar with the offer, suggests that the e-commerce giant sees an opportunity to integrate TikTok’s massive user base and content ecosystem into its sprawling operations, potentially bolstering its advertising and entertainment arms. However, the dismissive stance of other stakeholders hints at challenges, possibly tied to Amazon’s late entry or questions about its strategic fit compared to tech firms more aligned with social media. With Trump set to weigh a final proposal on Wednesday, per Reuters, the fate of TikTok remains precarious, balancing geopolitical tensions, corporate ambitions, and a ticking clock extended only by the 75-day grace period Trump granted—a period now nearing its critical juncture.
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