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Amazon and AppLovin Join the Race to Acquire TikTok as U.S. Ban Looms

4/3/2025
In a dramatic turn of events, Amazon and AppLovin have thrown their hats into the ring to acquire TikTok before a potential U.S. ban takes effect. While Amazon's bid is reportedly not being taken seriously, AppLovin seeks financial backing for their offer. The clock is ticking as the deadline approaches!
Amazon and AppLovin Join the Race to Acquire TikTok as U.S. Ban Looms
Amazon and AppLovin are making bids for TikTok as a U.S. ban looms. Can they save the app before Saturday's deadline?

Amazon and AppLovin Compete for TikTok Amid U.S. Ban Threat

In a dramatic turn of events, Amazon (AMZN) and adtech firm AppLovin (APP) have emerged as the latest contenders to acquire TikTok, as the app faces a potential ban in the United States. This ban is set to go into effect on Saturday unless a deal is reached with TikTok's Chinese parent company, ByteDance. The urgency surrounding the acquisition has intensified, prompting these major companies to submit their bids.

Amazon's Bid Details

According to a report by the New York Times on Wednesday, Amazon has formally submitted a letter outlining its bid to Vice President JD Vance and Commerce Secretary Howard Lutnick. However, insiders involved in the negotiations suggest that these officials are not taking Amazon's offer seriously, raising questions about the viability of this bid.

AppLovin's Strategic Moves

In parallel, AppLovin has taken proactive steps by meeting with former Wynn Resorts (WYNN) CEO Steve Wynn to discuss potential financial backing for its bid. This meeting underscores AppLovin's commitment to securing the resources necessary to bolster its offer for TikTok, as reported by the Wall Street Journal.

Market Reactions

The news of these bids has led to notable movements in the stock market. Shares of Amazon saw a rise of 2%, while AppLovin shares increased by nearly 3% on Wednesday, reflecting investor optimism regarding the potential acquisition of TikTok.

Ongoing Negotiations and Oracle's Involvement

As the bidding war unfolds, former President Donald Trump is reportedly meeting with Vance, Lutnick, and other officials to discuss a deal potentially spearheaded by Oracle (ORCL). Analysts from Wedbush have indicated that Oracle's offer could play a crucial role in "safeguarding U.S. consumer data" on the TikTok platform. They anticipate that an outline of a deal might be announced before the Friday night deadline, although an extension could be granted to allow further negotiations.

Implications of a Possible Ban

If no agreement is reached for TikTok, the repercussions could be significant, as a U.S. ban is poised to take effect on Saturday. This potential ban follows an executive order signed by President Trump in January, which previously delayed the action by 75 days. The situation remains fluid, and stakeholders are closely monitoring developments as the deadline approaches.

As the bidding process for TikTok intensifies, both Amazon and AppLovin are positioning themselves to capitalize on this unique opportunity, while the specter of a U.S. ban looms large. The outcome of these negotiations could reshape the landscape of social media and advertising in the United States.

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