Amazon has made a late proposal to acquire TikTok, which could be banned in the US unless it is sold by its Chinese parent company, according to a report by the New York Times on Wednesday.
The proposal was sent in a letter to officials who are engaged in discussions about selling TikTok to address US national security worries.
Former President Donald Trump has minimised the risks of TikTok being banned in the United States, expressing confidence that a buyer for the app’s US operations will be found before a Saturday deadline.
Reports from US media indicate that Trump intends to meet with senior White House officials on Wednesday to explore possible solutions.
Reports suggest that the most feasible resolution would involve current US investors in ByteDance transferring their investments into a newly formed independent global TikTok entity. Additional US investors, including Oracle and the private equity firm Blackstone, would be included to diminish the share of Chinese investors.
A significant portion of TikTok’s US operations is already managed on Oracle servers, and the company’s chairman, Larry Ellison, is a long-time ally of Trump.
The immensely popular video-sharing platform, which boasts more than 170 million American users, is at risk from legislation passed overwhelmingly last year that requires TikTok to separate from its Chinese parent ByteDance or face a ban in the US.
The law came into effect on January 19, the day before Trump’s inauguration, driven by a prevalent belief in Washington that TikTok is ultimately under the control of the Chinese government.
However, the Republican president quickly announced a postponement that has permitted it to remain operational; this delay is scheduled to end on April 5.
Any agreement to separate TikTok from ByteDance will need Beijing’s approval, and Trump has suggested he might reduce tariffs on China as a tactic to obtain Beijing’s consent for the sale.
Though he advocated for a ban during his first term, Trump has recently emerged as the app’s staunchest supporter, recognising it as a factor that garnered more support from younger voters in the November election.
The bidders’ list includes a campaign called “The People’s Bid for TikTok,” initiated by real estate and sports mogul Frank McCourt’s Project Liberty initiative.
Others competing for a bid are the AI startup Perplexity and a collective that features internet personality MrBeast, whose real name is Jimmy Donaldson.
