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The Pressure is On: Bidders Emerge for TikTok Ahead of Deadline
As the deadline looms for TikTok to secure a buyer, interest in the popular short-video platform is intensifying. With a cut-off date set for April 5, the urgency is palpable as potential buyers scramble to finalize deals amidst concerns over the app’s ownership.
Among the latest contenders are Amazon and a consortium spearheaded by Tim Stokely, the founder of OnlyFans. These developments come as U.S. officials express ongoing security apprehensions regarding TikTok’s connections to China, concerns that representatives of the platform and its parent company, ByteDance, have consistently denied. In response to these challenges, officials from the Trump administration convened on Wednesday to deliberate on various strategies concerning TikTok’s future.
Stokely’s startup, Zoop, has collaborated with a cryptocurrency foundation to present a competitive bid for TikTok, according to statements made to Reuters. This partnership reflects a growing trend where technology and finance intersect in the bidding landscape.
A U.S. administration official confirmed that Amazon reached out to Vice President JD Vance and Department of Commerce Secretary Howard Lutnick regarding its interest in TikTok. While Amazon chose not to comment publicly, TikTok and ByteDance did not provide an immediate response to inquiries about the bidding process.
Following the news of Amazon’s last-minute bid, the company saw its stock rise approximately two percent, indicating investor optimism tied to potential growth opportunities associated with acquiring TikTok.
Amazon has long sought to establish a social media platform that aligns with its e-commerce objectives and attracts a younger demographic. This ambition dates back to acquisitions such as Twitch in 2014 and Goodreads in 2013, which were integral to its strategy of building a social networking presence.
Additionally, Amazon had previously explored a TikTok-like feature named Inspire, which unfortunately was discontinued earlier this year after it failed to meet expectations.
President Trump recently disclosed that his administration is in discussions with four distinct groups regarding the acquisition of TikTok, though names of these bidders remain undisclosed.
Furthermore, private equity firm Blackstone is rumored to be considering lending its financial support to augment ByteDance’s non-Chinese shareholders, including Susquehanna International Group and General Atlantic, in a bid for TikTok’s U.S.-based operations. Meanwhile, venture capital firm Andreessen Horowitz is reportedly negotiating to secure external funding to assist a group led by Oracle and other U.S. investors in the effort to buy out TikTok’s Chinese stakeholders.
Current talks being led by the White House involve the potential creation of a U.S. entity dedicated to TikTok, alongside plans to reduce Chinese ownership to below the 20 percent threshold mandated by American regulations.
The New York Times reported on Wednesday that various stakeholders in the negotiations do not view Amazon’s bid with significant seriousness, casting doubt on the tech giant’s chances of success in this pivotal acquisition.
The fate of TikTok, which boasts nearly half of all Americans among its users, hangs in the balance following a recent law that mandates ByteDance to divest from TikTok by January 19, 2024. On his first day back in office, Trump issued an executive order delaying the impending ban on the app by 75 days, providing a brief reprieve in the face of escalating tensions.
Elected officials have stated that TikTok’s ownership by ByteDance poses a risk due to its potential ties to the Chinese government, leading to speculation about possible misuse of the platform for influence operations against the U.S. and the collection of American user data.
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www.cbc.ca