The New York Times (NYT) reported on the 2nd (local time) that Amazon has submitted a proposal to acquire the U.S. operations of the Chinese video platform TikTok.
NYT cited sources stating that Amazon sent a letter-form proposal to J.D. Vance, the Vice President in charge of supporting the sale process, and Howard Lutnick, the Secretary of Commerce, ahead of the sale deadline for TikTok scheduled for this weekend.
NYT evaluated, "Amazon has emerged as the most prominent bidder in this acquisition battle." However, sources added that "there is no atmosphere of seriously considering Amazon's bid proposal during the Trump administration."
Bloomberg reported that even if Amazon is not genuinely interested in acquiring TikTok, merely expressing interest could provide strategic benefits.
This could lead other potential acquirers to present higher offers, drawing more money from potential competitors, and during the negotiation process, Amazon could gain insights on TikTok Shops that compete with Amazon's online retail business.
As the sale deadline approaches in three days, more potential acquirers are showing interest in TikTok.
Zoop, the new startup by the founder of the adult platform OnlyFans, submitted an acquisition proposal after partnering with the cryptocurrency-related organization HBAR Foundation. Mobile marketing company AppLovin has also entered the bidding.
Earlier, a consortium led by Frank McCourt, a real estate magnate and former owner of the Major League Baseball (MLB) Los Angeles Dodgers, also expressed interest in acquiring TikTok. Oracle and global asset management firm Blackstone have discussed forming a joint venture to pursue the acquisition.
However, even if President Trump signs the acquisition proposal, approval from TikTok's parent company ByteDance and the Chinese government is required. The communication noted that ByteDance still opposes the acquisition and it is unclear how much ByteDance and the Chinese government are involved in the negotiations.
Recently, President Trump left room for negotiation by suggesting that if the Chinese government cooperates with the TikTok acquisition, it could reduce tariffs on China.