As the April 5 deadline for TikTok to secure a non-Chinese buyer approaches, the number of interested bidders continues to rise. Among the latest contenders are Amazon and a consortium led by OnlyFans founder Tim Stokely, adding to an already competitive bidding process.
The U.S. government has long expressed concerns over TikTok’s ties to China, arguing that its ownership by ByteDance poses security risks. While both TikTok and ByteDance have denied these allegations, the social media giant faces an impending ban in the United States if a deal is not reached soon.
Stokely’s startup, Zoop, in collaboration with a cryptocurrency foundation, has put forward a late-stage bid for TikTok. Meanwhile, Amazon, which has sought to establish a strong social media presence, has also shown interest. The e-commerce giant previously acquired live-streaming platform Twitch and book review site Goodreads as part of its broader strategy to engage younger users. However, Amazon’s past attempts at launching a TikTok-style feed, such as Inspire, have not gained traction.
The involvement of Amazon in the bidding process led to a 2% rise in its stock price following the announcement. However, reports suggest that some parties engaged in discussions do not consider Amazon’s bid a serious contender.
Other major players in the race include private equity firm Blackstone, which is in talks to support a bid from ByteDance’s non-Chinese investors, led by Susquehanna International Group and General Atlantic. Additionally, venture capital firm Andreessen Horowitz is reportedly exploring investment opportunities in a bid spearheaded by Oracle and other American investors to carve out TikTok’s U.S. business.
White House-led negotiations aim to ensure that any future U.S. entity of TikTok reduces Chinese ownership to below the 20% threshold mandated by American law. The 2024 legislation requiring ByteDance to divest TikTok, which passed with bipartisan support, has placed the app’s future in uncertainty.
With nearly half of Americans using TikTok, its fate remains a critical issue. As the deadline looms, intense negotiations and high-stakes bidding will determine whether the app continues to operate in the U.S. or faces a ban due to national security concerns.
