As the April 5 deadline for TikTok to find a non-Chinese buyer approaches, new bidders have emerged, intensifying the competition for the popular social media platform. Amazon and a startup led by Tim Stokely, founder of OnlyFans, are the latest to submit bids for TikTok. The app, owned by the Chinese company ByteDance, faces a potential U.S. ban due to security concerns over its ties to China, which TikTok and ByteDance have denied.
Reuters reports:
Washington officials have said TikTok’s ownership by ByteDance makes it beholden to the Chinese government, and Beijing could use the app to conduct influence operations against the United States and collect data on Americans.
The intent to bid was sent this week to the White House by Zoop, billionaire Stokely’s new company, and the Hbar Foundation, which manages the Hedera cryptocurrency network’s treasury.
While OnlyFans is known mainly for pornography, Zoop is mainstream and family-friendly, and gives back the majority of its revenue to those who post on the site, rewarding them for driving up user engagement.
Amazon’s bid is part of the company’s long-term ambitions to develop a social media network to engage younger audiences and drive product sales. The company had previously tested a TikTok-like feature, called Inspire, but it was shut down earlier this year. Meanwhile, Stokely’s new company, Zoop, has teamed up with the Hbar Foundation, a cryptocurrency entity, to propose an acquisition that aims to create a new model where creators benefit directly from their content’s value.
Several other parties, including private equity firms and venture capital groups, are also engaged in discussions to acquire TikTok, with proposals to carve out its U.S. operations and dilute Chinese ownership below the threshold required by U.S. law. Despite these bids, some reports suggest that Amazon’s proposal may not be taken as seriously as others in the ongoing talks. The White House has been closely involved in facilitating the negotiations, with U.S. Vice President JD Vance overseeing the auction.
The pressure to divest TikTok follows the passage of a U.S. law in January 2024, which mandates ByteDance to sell TikTok or face a ban due to national security concerns. TikTok advocates argue that this action violates the First Amendment by restricting access to foreign media, but the deadline remains firm as U.S. officials continue to weigh the implications of the app’s ownership.
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