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Last-Minute Bids for TikTok Ahead of Deadline
As the deadline approaches, tech giants are making urgent offers to acquire TikTok. With a critical cutoff date of April 5 looming, both Amazon and AppLovin have submitted their bids in hopes of securing the popular social media platform.
Amazon’s proposal was sent in a formal letter to Vice President JD Vance and Commerce Secretary Howard Lutnick, outlining its intention to purchase TikTok outright. However, reports indicate that the current administration under President Donald Trump is not favorably considering this acquisition.
In addition to Amazon, AppLovin, a prominent mobile technology company, has also thrown its hat into the ring with an unspecified bid. The company, valued at approximately $100 billion, reached out to billionaire real estate mogul Steve Wynn to collaborate on funding its bid. The firm is pitching its proposal as a means of job creation and addressing important national security considerations.
Oracle and Blackstone Join the fray
Amid these developments, The Wall Street Journal reports that President Trump has received updates on a cooperative effort involving cloud services leader Oracle and the asset management firm Blackstone. These businesses, alongside additional investors, are working on a joint proposal for TikTok, which would need approval from Chinese regulators to move forward.
In acknowledging the complexity of the situation, Trump emphasized the necessity of cooperation from China for any potential deal, even suggesting that he would contemplate a reduction in tariffs to facilitate a resolution.
Other Bidders Emerge
Amazon and AppLovin are not alone in their pursuit of TikTok. Various other entities have expressed interest, including billionaire Frank McCourt. He has collaborated with investor Kevin O’Leary and Reddit’s co-founder Alexis Ohanian to put forth a bid of $20 billion earlier this year. Meanwhile, AI startup Perplexity has also offered to merge its operations with TikTok’s U.S. engagement for a deal exceeding $50 billion.
In a legislative effort to mitigate national security concerns, Congress enacted the Protecting Americans From Foreign Adversary Controlled Applications Act in April 2024. This law mandated that TikTok sever its longstanding ties with its Beijing parent company ByteDance by January 19, else face a potential ban from U.S. app stores.
The Fallout from the Acquisition Hunt
As these negotiations unfolded, TikTok initially suspended services for its 170 million U.S. users on January 18 when it appeared unable to secure a buyer. However, the app’s functionality was quickly restored the following day when Trump assured that it would continue operating in the U.S. He subsequently enacted an executive order that extended the deadline for TikTok’s operations by 75 days, providing additional time for a buyer to emerge.
In a recent statement on social media, Trump expressed his desire for the U.S. to hold a minority stake in a joint ownership structure for TikTok, articulating the potential value of such a deal as worth “hundreds of billions of dollars – maybe trillions.”
This ongoing saga continues to unfold as various parties compete to navigate the complexities of regulatory frameworks and international relations while attempting to secure a lucrative investment in TikTok.
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