Amazon tells White Home it is thinking about shopping for TikTok

Amazon has advised the White Home it’s thinking about shopping for TikTok forward of a key deadline by which its guardian firm, China-based ByteDance, should both promote the favored social media app or face a ban within the U.S., CBS Information has discovered, in keeping with two folks conversant in discussions. 

Amazon has submitted a bid for the app, the New York Occasions reported earlier, citing folks conversant in the matter. 

Each Amazon and TikTok declined to touch upon the matter. 

Amazon’s bid comes after lawmakers final yr handed a invoice setting a Jan. 19 deadline for the sale, which Mr. Trump prolonged for 75 days. He set a deadline of Saturday, April 5, for ByteDance to both promote its stake within the app or be pressured to close down within the U.S.

The retail big made the supply in a letter addressed to Vice President JD Vance and Commerce Secretary Howard Lutnick, in keeping with folks conversant in the matter, the New York Occasions reported. 

Retail trade analysts say Amazon’s curiosity in TikTok underscores the social app’s significance to on-line retailers, given its capability to drive e-commerce purchases.

“Whereas Amazon is the No. 1 vacation spot for looking for merchandise, it stays a channel that’s most suited to deliberate and particular purchases,” GlobalData managing director Neil Saunders mentioned in an electronic mail to CBS MoneyWatch. “It has definitely made some inroads into turning into a spot for shopper leisure and discovery, which led to impulse purchases, however that is very a lot the protect of TikTok and TikTok Store. This extra impulse pushed a part of the market is quicker rising that extra established e-commerce channels.”

AppLovin, a California-based cellular expertise firm, has additionally expressed curiosity in buying TikTok, an individual conversant in the matter advised CBS Information. 

In remarks to reporters on Air Pressure One over the weekend, Mr. Trump addressed the matter of TikTok’s sale, saying, “We’ve got a number of potential patrons. There’s a number of curiosity in TikTok. The choice goes to be my choice.” 

He added that he’d “wish to see TikTok stay alive.”

The U.S. authorities has mentioned TikTok poses a risk to nationwide safety as a result of its huge trove of buyer knowledge, together with searching patterns, places and biometric data, might find yourself within the fingers of the Chinese language authorities. 

Forward of the preliminary divestiture deadline, ByteDance earlier this yr briefly shut down TikTok within the U.S. Mr. Trump rapidly paused the ban and the service was restored. 

The ban doesn’t goal TikTok’s U.S. customers. However the Defending People from Overseas Adversary Managed Purposes Act, signed into legislation in 2024 beneath former President Biden, would make it unlawful for app shops and web-hosting companies to distribute or service TikTok. 

contributed to this report.