Amazon eyes TikTok acquisition amidst security concerns
The Trump administration is considering selling TikTok but keeping the algorithm with ByteDance. Recently, a surprise proposal has emerged for Amazon to acquire the service, as reported by "The Washington Post."
President Donald Trump's administration is contemplating various scenarios regarding TikTok's future, including selling the app while retaining the algorithm with the Chinese company ByteDance. According to The Washington Post, ByteDance would lease the algorithm to a new entity operating TikTok in the United States.
Amazon interested in buying TikTok
The proposal to leave the algorithm with ByteDance raises concerns among politicians, who fear further Chinese influence on American app users. The TikTok algorithm is central to national security discussions, as it can be used for propaganda.
On Wednesday, Trump will meet with key officials to discuss possible solutions. Among the participants will be Vice President JD Vance and Commerce Secretary Howard Lutnick. A decision on TikTok's future is expected before the extended deadline on Saturday for the service's ban in the USA. By 4th April, TikTok must agree to an acquisition by an American company to avoid disappearing from the market there.
The White House monitors the TikTok issue
As reported by the New York Times, Amazon has submitted its offer to fully acquire TikTok in a letter addressed directly to Vice President JD Vance and Commerce Secretary Howard Lutnick, who oversee the matter. The proposal reportedly emerged in recent days.
However, according to "The Washington Post," the White House is not seriously considering this offer. Other investors besides Amazon, including the Blackstone fund and the tech company Oracle, have also expressed interest in acquiring TikTok. Media reports have also mentioned other potential buyers, including billionaire Frank McCourt, a Canadian investor known from the reality show "Shark Tank," and investors close to Trump from Silicon Valley's Andreessen Horowitz fund.
ByteDance, which is 60% owned by institutional investors, could sell a larger stake to Western investors. One reason for forcing changes concerning TikTok is the potential acquisition of sensitive data by China about American users. So far, neither ByteDance nor the Chinese government, which has prohibited exporting the TikTok algorithm, has definitively stated whether they will agree to any deal.
