The New York New York Times reported on Wednesday, March 2 that Amazon faced an imminent ban on the U.S.-China owner Bondentance, a surprising last bid.
According to the report, Amazon submitted a proposal to officials involved in the Tiktok sale in a letter, a process driven by U.S. national security issues. However, sources close to the negotiations have indicated that Amazon’s bid has not been taken seriously by key political parties.
The report shows that the most likely solution will involve existing U.S. investors selling shares into newly formed independent global Tiktok companies.
In addition, major U.S. investors such as Oracle and Blackstone are expected to participate in the deal to reduce ownership in China. Oracle, which already operates most of its servers at Tiktok, is seen as a leader, especially given its chairman Larry Ellison is a close ally of former President Donald Trump.
Despite concerns about the U.S. ban, Trump said he believes buyers will appear before Saturday’s deadline. He will meet with senior White House officials on Wednesday to discuss possible solutions.
Tiktok has more than 170 million U.S. users and scrutiny of U.S. lawmakers remains under severe scrutiny. A law passed last year requires the sale of the app to be faced with an injunction, citing national security risks associated with its Chinese ownership.
Even though Amazon’s bid shocked the negotiations, industry experts remain skeptical of the chances of success.
