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Why it matters: As ByteDance’s April 5 deadline to divest TikTok or face a ban approaches, last-minute players have entered negotiations to potentially take over the U.S. operations of the popular social network. The Trump administration, which postponed the ban in January, is reportedly exploring several options to bring some or all of TikTok under American ownership.
Sources recently told The New York Times that Amazon made an 11th-hour offer to purchase all of TikTok, which faces a ban this Saturday April 5 if its Chinese owner, ByteDance, fails to divest the app to a U.S. buyer. Other new bidders include the mobile app platform AppLovin and a company co-founded by OnlyFans founder Tim Stokely.
Amazon’s offer reportedly came in the form of a letter addressed to Vice President JD Vance and Commerce Secretary Howard Lutnick, but officials involved in the negotiations are not seriously considering it.
Meanwhile, OnlyFans Stokely’s new social media company, Zoop, is working with the cryptocurrency foundation HBAR on a bid that aims to alter TikTok’s revenue-sharing model.
Congress passed a law last year banning the social media platform – which is used by roughly half of all Americans – unless a U.S.-based buyer emerges. Many worry that China’s government could compel ByteDance to hand over American user data or manipulate TikTok’s recommendation algorithm to spread propaganda. However, a potential deal could still leave the algorithm under Chinese control.
At least one proposal under consideration by the Trump administration would have ByteDance lease the algorithm to U.S. companies while retaining a minority stake. Potential investors include tech giant Oracle and private equity firm Blackstone. It remains unclear whether Beijing or U.S. lawmakers would approve such a plan.
President Trump initially attempted to force ByteDance to divest TikTok by threatening a ban during his first term, but later reversed course. After President Biden signed last year’s law, Trump extended the legislation’s original deadline to April 5 – just days after taking office – and recently stated that a deal is imminent.
AI startup Perplexity has also proposed acquiring and overhauling TikTok. The company would rebuild the algorithm, introduce community notes, and open-source the recommendation system.
Others who have reportedly expressed interest in the platform include YouTuber MrBeast, Reddit co-founder Alexis Ohanian, Los Angeles Dodgers owner Frank McCourt, tech entrepreneur Jesse Tinsley, and Wyoming businessman Reid Rasner.
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