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With the weekend deadline for TikTok to secure a buyer approaches, the list of potential bidders continues to grow. Amazon, and a consortium led by OnlyFans founder Tim Stokely are the latest contenders in the race to acquire TikTok. The platform faces an April 5 deadline to secure a non-Chinese buyer or risk being banned in the United States.
US officials have expressed security concerns over TikTok’s ties to China, a claim that both the app and its owner, ByteDance, have denied, Reuters reported.
Startup Zoop, led by OnlyFans founder Tim Stokely, has teamed up with a cryptocurrency foundation to submit a late-stage bid for TikTok, the two entities told Reuters on Wednesday.
By Ropafadzo Mashawi
A US administration official confirmed that Amazon had sent a letter to Vice President JD Vance and Commerce Secretary Howard Lutnick, a report by Reuters said.
Meanwhile, Amazon shares rose by about 2% following the news of the last-minute TikTok bid.
Amazon has long aimed to develop its own social media platform to boost sales and attract a younger audience. As part of this strategy, it acquired live-streaming site Twitch for nearly $1 billion in 2014 and book review platform Goodreads in 2013.
Amazon previously developed and tested Inspire, a TikTok-like short-form video and photo feed, but shut it down earlier this year.
Reuters earlier said that Blackstone, a private equity firm is discussing joining ByteDance’s non-Chinese shareholders, led by Susquehanna International Group and General Atlantic, in contributing fresh capital to bid for TikTok’s US business.
Meanwhile, US venture capital firm Andreesen Horowitz is also in talks to add outside funding to buy out TikTok’s Chinese investors.
Trump has set a Saturday, April 5, deadline for ByteDance to sell TikTok or face a potential ban in the US. The administration’s executive order, which delayed enforcement of a federal law requiring ByteDance to divest TikTok, is still in effect. However, the president could extend the deadline if the negotiations are not finalized in time. The sale of TikTok is projected to fetch at least $40 billion.
National security concerns have been at the center of the debate. Congress and federal agencies have cited risks related to Chinese government’s influence over the app, which boasts over 170 million American users.
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