Amazon Enters Late-Stage Bidding War, But Success Unlikely Due to Antitrust Concerns
Just three days before the deadline for the sale of TikTok’s U.S. operations, Amazon has reportedly submitted a letter of intent to join the bidding process. This has further complicated the acquisition race, which already includes several contenders such as AI search service company Perplexity.
According to The New York Times, Amazon has approached JD Vance, Vice President overseeing the TikTok sale negotiations, and Howard Lutnick, Commerce Secretary, with a proposal to acquire TikTok’s U.S. business rights. Other interested parties include a consortium led by Reddit co-founder Alexis Ohanian, a consortium involving YouTuber MrBeast, and Perplexity. Additionally, it’s reported that U.S. mobile ad company AppLovin has also expressed interest.
The reason behind Amazon’s sudden entry into the bidding process is unclear. However, NYT suggests that even if Amazon does not ultimately acquire TikTok, the company could still benefit. By participating, Amazon could drive up the bidding price for its competitors and gain access to ‘TikTok Shop’s’ shopping service data as a bidder.
Despite this, potential violations of antitrust laws pose a significant obstacle to Amazon’s chances of successfully acquiring TikTok. The newspaper reports that the Trump administration is not taking Amazon’s bid seriously due to these concerns.
The sale negotiations for TikTok’s U.S. business must be concluded by the 5th of the month. President Donald Trump had previously extended the deadline by 75 days through an executive order issued on January 19th. Although there is a possibility of another extension if an agreement is not reached by the 5th, the White House aims to settle the matter without further extensions.
However, the positions of the Chinese government and TikTok’s parent company ByteDance, which hold approval authority over the sale, remain unclear. The Wall Street Journal reports that Chinese authorities intend to bundle the TikTok sale with other issues, such as tariffs, during negotiations. Even if an agreement on the TikTok sale is reached, its finalization could be delayed by tariff discussions.