Amazon Bids to Acquire TikTok Ahead of Looming U.S. Ban on April 5

What Happened?

Amazon has placed a last-minute bid to acquire the popular video-sharing media platform TikTok ahead of a looming U.S. ban that is set to go into effect Saturday.

A Trump administration official, under conditions of anonymity, said Amazon's offer was made by letter to Vice President JD Vance and Commerce Secretary Howard Lutnick.

The New York Times first reported on the bid.

After an eleventh-hour pitch, Amazon joins several possible investors who could buy a stake in the app.

Amazon shares reportedly rose close to 2% in a volume spike Wednesday after news that the U.S. tech and e-commerce giant had entered the mix.

Software company Oracle and the investment firm Blackstone were reportedly among other possible investors also entered into discussions.

Microsoft had joined the growing list of firms after President Donald Trump delayed the ban in January through executive action.

Why it Matters

President Trump had previously stated he would like to see a bidding war in an effort to save the social platform.

If TikTok's parent company ByteDance does not aim to sell to a U.S. buyer, it will face another ban.

TikTok's U.S. services were restored after the app temporarily went dark for users, as required by the Protecting Americans from Foreign Adversary Controlled Applications Act.

The Supreme Court unanimously upheld the law to ban the app in a 27-page unsigned opinion.

Trump had extended the period so that the U.S. could make a deal to protect national security in a 50-50 joint venture partnership.

He suggested that an American buyer purchase half of TikTok as ByteDance had agreed to work with the U.S. on a long-term solution.

Experts have questioned if the law would allow such a venture amid a 20% cap for 'foreign adversary' owners.

White House-led talks have reportedly entailed plans to spin off a U.S. entity for TikTok and dilute Chinese ownership below a 20% threshold in the new business.

How it Affects You

It is still unclear if Trump's solution would satisfy Congress members in the end without sole American ownership.

Trump has suggested he could extend the pause on banning TikTok but expects a deal to happen by Saturday.

Both the FBI and the Federal Communications Commission have reportedly warned that ByteDance could share user data with China’s authoritarian government.

The U.S. has not provided evidence of that happening, according to The Associated Press.

Over one million content creators still await a finalized measure on the TikTok U.S. outcome.