As the April 5 deadline for TikTok to secure a non-Chinese buyer approaches, major contenders, including Amazon and a consortium led by OnlyFans founder Tim Stokely, have entered the race to acquire the popular short-video app.
According to a Reuters report, Zoop, a startup founded by Stokely, has teamed up with the Hbar Foundation, which manages the Hedera cryptocurrency network’s treasury, to submit a late-stage acquisition proposal for TikTok.
“Our bid for TikTok isn’t just about changing ownership, it’s about creating a new paradigm where both creators and their communities benefit directly from the value they generate,” Zoop co-founder RJ Phillips told Reuters.
The intent to bid was sent this week to the White House, marking a significant late entry in the highly competitive sale process.
Amazon’s interest
Amazon has also emerged as a surprise bidder. The tech giant had submitted a letter to U.S. Vice President JD Vance and Department of Commerce Secretary Howard Lutnick, confirming its interest in acquiring TikTok.
Amazon’s past efforts in social media include its $1 billion acquisition of Twitch in 2014 and the purchase of book review platform Goodreads in 2013.
More recently, Amazon experimented with a TikTok-style video feed called Inspire, which was shut down earlier this year.
However, the New York Times noted that sources involved in the discussions did not appear to be taking Amazon’s bid seriously.
Backstory
The demand for TikTok’s divestment stems from fears that ByteDance, a Chinese company, is influenced by the Chinese government. U.S. lawmakers have expressed concerns that TikTok could be used for data collection and influence operations.
A law requiring ByteDance to divest TikTok was passed with overwhelming bipartisan support and took effect on January 19, 2024.
Initially, the law required ByteDance to sell TikTok by January 19, 2024, one day before President Donald Trump took office.
However, Trump delayed the enforcement of the law until April 5, 2024, to allow more time for negotiations. He has also suggested that he might extend the deadline further if necessary.
Other bidders
Apart from Amazon and Zoop, other investment groups have also shown interest. Reuters reported that private equity firm Blackstone is discussing joining ByteDance’s non-Chinese shareholders, led by Susquehanna International Group and General Atlantic, to raise capital for a bid.
Additionally, U.S. venture capital firm Andreessen Horowitz is in talks to contribute outside funding for an offer led by Oracle (ORCL.N) and other American investors.
Other notable bids have emerged, including an initiative called “The People’s Bid for TikTok,” launched by real estate and sports tycoon Frank McCourt’s Project Liberty initiative.
Artificial intelligence startup Perplexity and a consortium that includes internet personality MrBeast (Jimmy Donaldson) have also entered the race.
Reports suggest that the most likely solution would see existing U.S. investors in ByteDance roll over their stakes into a new independent global TikTok company, with additional U.S. investors, including Oracle and Blackstone, being brought on to reduce the proportion of Chinese ownership.
