Amazon
In a dramatic turn of events, Amazon has submitted a last-minute bid to acquire TikTok, the wildly popular Chinese-owned video-sharing platform, just days before the critical April 5 deadline to sell its U.S. operations. The move, reported by The New York Times on Wednesday, amplifies the growing uncertainty around TikTok’s future amid mounting regulatory pressures in the U.S.
The clock is ticking for ByteDance, TikTok’s parent company, which has been ordered to divest its U.S. business due to concerns over national security. Under the Protecting Americans from Foreign Adversary Controlled Applications Act, ByteDance must sell TikTok’s U.S. operations to a non-Chinese entity by January 19, 2025, or face the possibility of a nationwide ban.
TikTok was briefly suspended in the U.S. on January 18, but the company quickly resumed operations after former President Donald Trump signed an executive order extending the divestment deadline by 75 days. With less than four days remaining until the new April 5 cutoff, TikTok’s fate hangs in the balance. Without a sale, the app could be banned, though the specific enforcement measures remain unclear.
A range of potential buyers, including private equity firm Blackstone, has expressed interest in securing TikTok’s U.S. operations. Meanwhile, U.S. venture capital firm Andreessen Horowitz is reportedly working to secure additional investment to help buy out TikTok’s Chinese investors.
Adding to the drama, Oracle and a coalition of American investors are in talks to create a deal that would separate TikTok from ByteDance entirely. This high-stakes acquisition attempt underscores the uncertainty surrounding TikTok, which has over 170 million U.S. users. As the deadline approaches, the clock is ticking for ByteDance to finalize a deal and avoid a potentially game-changing ban.
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