Amazon to buy TikTok for $45bn TikTok's fortunes have taken another turn

According to foreign media reports, at the key node of TikTok facing the United States "do not sell or ban", e-commerce giant Amazon suddenly threw out an "olive branch" and proposed to fully acquire TikTok's US business for $45 billion, which instantly set off waves in the global technology and business fields. The offer is not only about the future of the two companies, but also involves a complex political, commercial and technological game

In 2024, the US government forced ByteDance to sell TikTok's US business on the grounds of so-called "national security", and the law originally scheduled to take effect in January 2025 was finally extended to April 5. In the face of this almost "bullying" requirements, Bytedance has repeatedly stated firmly that it will not easily sell TikTok business. Although TikTok resumed service at the edge of the ban, the time of April 5 has always been like the sword of Damocles hanging over TikTok's fate in the United States.

Amazon's entry into the acquisition race has been dramatic. Its $45bn offer, which far exceeds previous bids by other bidders, pushes the valuation of TikTok's US operations to new heights and adds a number of variables to the takeover battle. From the perspective of business strategy, Amazon's move has far-reaching considerations. TikTok has a huge user base and a large number of active users in the United States, and its e-commerce business TikTok Shop has developed rapidly in recent years, with an annual transaction volume of more than $16 billion. Once the acquisition is successful, Amazon will directly obtain massive and highly active user traffic, inject new vitality into its own e-commerce business, and open up the closed-loop of short video grass planting - e-commerce ordering, improving the social e-commerce landscape. Amazon has previously launched its own short video feature Inspire, but failed to gain market attention, and eventually fell offline, the acquisition of TikTok is undoubtedly a "curve saving the country."

However, Amazon's acquisition path is far from smooth, and many obstacles lie ahead. Time is the first problem, the White House requires April 5 to complete the deal, in just a few days, Amazon needs to solve a series of difficult problems such as data hosting, antitrust review, difficulty can be imagined. Technical barriers can not be ignored, TikTok core algorithm if not included in the scope of the deal, can not be used after the spin-off, its valuation may plunge 80%, the acquisition value will be greatly discounted. Political risk is even more closely accompanied, Trump has strongly stated that "either ban or completely sell to American companies", and Amazon's own cloud business in China (AWS) may also trigger new national security questions, making the acquisition more uncertain.

In addition to Amazon, there are many companies eyeing TikTok's U.S. business. Oracle is reported to have restarted negotiations with ByteDance, or continue the 2020 "technology hosting" model; AppLovin, a mobile technology company, has also submitted a takeover bid and is in talks with Steve Wynn, a casino magnate, about financial backing; Private equity firm Blackstone Group is considering joining ByteDance's current non-Chinese shareholders to provide fresh funding for the acquisition; Perplexity AI, an artificial intelligence startup, proposed a merger with TikTok's U.S. subsidiary; Even billionaire McCourt and "Shark Tank" star O 'Leary launched a crowdfunding campaign to "let users own TikTok equity."

In the face of all sides, TikTok is also actively rescuing itself, accelerating its transformation into the field of e-commerce and AI, and enhancing its asset value and competitiveness. In terms of e-commerce, continue to expand business territory, and cooperate with more brands and merchants; In the field of AI, we continue to invest in research and development, optimize recommendation algorithms, and improve user experience.

What is TikTok's fate in the United States? Will it be acquired by Amazon or another bidder, or will ByteDance stick to its bottom line and choose to withdraw from the US market? This is not only a major choice faced by TikTok and ByteDance, but also a profound impact on the global social media and e-commerce industry pattern, as well as the game situation in the Sino-US technology field. We will wait to see how this thrilling acquisition drama plays out.