World.Alpha-News.org ➤ The news of the world is here
Bidders for TikTok Multiply as Deadline Approaches, Including Amazon and OnlyFans Founder

Introduction

Bidders for TikTok are increasing as the deadline approaches for the social media platform to find a non-Chinese buyer by April 5, amid concerns over its ties to China.

Context

U.S. officials have expressed security concerns regarding TikTok, which is owned by Chinese company ByteDance. The platform could face a ban in the United States if a deal is not reached by the deadline. Reports indicate that the Trump administration is reviewing various options for TikTok's future.

Developments

Recent Bidders

Startup Zoop, led by Stokely, founder of OnlyFans, is partnering with a cryptocurrency foundation to submit a late-stage bid for TikTok. This follows the confirmation that Amazon has communicated with Vice President JD Vance and Secretary of Commerce Howard Lutnick regarding a potential bid.

Market Reactions

Following the news of Amazon's interest, shares of the company rose by about 2%. Amazon has long aspired to develop a social media platform to enhance sales and engage younger users, previously acquiring live video service Twitch and book review platform Goodreads to establish a social network. Additionally, Amazon had been testing a TikTok-like feature called Inspire but discontinued it earlier this year.

Ongoing Negotiations

The Trump administration has acknowledged its involvement in discussions about the sale of TikTok, although specific parties were not identified. Private equity firm Blackstone, alongside Susquehanna International Group and General Atlantic, is reportedly contributing capital to support a bid for TikTok's U.S. operations.

U.S. venture capital firm Andreessen Horowitz is also exploring options to secure funding aimed at purchasing TikTok's Chinese investors, as part of a broader bid led by Oracle and other American investors to separate the app from ByteDance. Plans being discussed by the White House include the establishment of a U.S. entity for TikTok, reducing Chinese ownership to below a 20% threshold mandated by U.S. law.

Conclusion

The fate of TikTok, which is used by nearly half of all Americans, remains uncertain following the passage of a 2024 law that mandates ByteDance to divest TikTok by January 19. Officials in Washington believe that the app's ownership by ByteDance poses a risk, as it could subject the platform to the influence of the Chinese government and compromise the privacy of American users.