- Published on
Is Amazon Angling To Buy TikTok The Two Companies’ Ties Deepen
Introduction
As the January deadline approaches for TikTok to either be sold to an American firm or face a nationwide ban, the Chinese-owned social media giant is quietly deepening its relationship with one of its biggest rivals: Amazon. Industry insiders suggest that this strategic move could complicate efforts to shut down TikTok, and some believe Amazon may even be considering a potential acquisition.
Roy Zeller, who recently served as TikTok's Head of Sales for Products and Services, commented that "the writing is on the wall," indicating that Amazon's growing reliance on TikTok may amplify opposition against a ban. He noted that the potential acquisition isn't just concerning for small businesses and influencers; Amazon's involvement would make the call to ban TikTok even louder and harder to ignore.
Amazon's spokesperson Maria Bashet refrained from commenting on merger speculation, stating that they do not comment on mergers and acquisitions. Meanwhile, the legal battle between the U.S. government and TikTok is heating up. This week, oral arguments will begin in court regarding a recent law that mandates TikTok's Chinese parent company, ByteDance, to divest its operations to an American entity by January. If not, it risks being shut down in the U.S.
In response to these legal challenges, TikTok and ByteDance have filed a lawsuit that denounces the law as unconstitutional. A group of TikTok creators has also filed a separate lawsuit against the U.S. government in a bid to protect the platform's future.
Despite the uncertainties, TikTok has been making strategic moves to solidify its presence in the U.S. market, including heavily promoting its sister app, CapCut, which has seen significant growth. Additionally, TikTok has announced a partnership with Amazon that allows users to browse and purchase Amazon products within the TikTok app itself, without needing to navigate away to the Amazon website.
Once users link their TikTok and Amazon accounts, the connection remains active unless manually unlinked. Furthermore, Amazon has been encouraging its influencers to promote its sellers on TikTok, thus bridging the gap between the two platforms in terms of e-commerce.
While both companies compete fiercely in the e-commerce sector, the partnership can be seen as a mutual benefit as they both seek to enhance their foothold within the social e-commerce landscape. Zeller describes this relationship as a case of "Frenemies with Benefits," as the two giants attempt to expand their reach from different angles.
For full coverage, check out Alexandra Sven's piece on Forbes.com.
Keywords
- Amazon
- TikTok
- Acquisition
- ByteDance
- Social Media
- E-commerce
- Partnership
- CapCut
- Lawsuit
- National Security
FAQ
Q: Is Amazon planning to buy TikTok?
A: There are industry speculations suggesting that Amazon may be considering a potential acquisition, particularly as the deadline for TikTok's sale approaches.
Q: Why is TikTok facing potential bans in the U.S.?
A: TikTok is facing potential bans due to national security concerns regarding its Chinese ownership. A recent law requires its parent company, ByteDance, to divest its operations to an American firm by January.
Q: How is TikTok trying to strengthen its position in the U.S.?
A: TikTok is deepening its relationship with Amazon, promoting its sister app CapCut, and enabling users to browse and purchase Amazon products directly within TikTok.
Q: What legal actions have TikTok and its creators taken?
A: TikTok and ByteDance have filed a lawsuit challenging the recent law requiring a divestment, calling it unconstitutional. Additionally, a group of TikTok creators has filed a lawsuit against the U.S. government.
Q: What does the partnership between TikTok and Amazon entail?
A: The partnership allows TikTok users to browse and buy Amazon products within the TikTok app, facilitating an in-app shopping experience without redirecting to Amazon's website.