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The White House is pushing hard to broker a deal that would see the Chinese short-video app TikTok sold to an American company, aiming to eliminate any chance of the mainland using it to snoop on American citizens. However, it seems one Big Tech player reportedly isn’t winning any favor with Team Trump: The online retail behemoth Amazon, according to ‘On The Money’.
One would wonder why, especially since the days of ‘animosity’ between Amazon founder Jeff Bezos and Donald Trump as seen during the US President’s first term is gone. Amazon’s Bezos rolled up to the inauguration with his dazzling fiancée, Lauren Sanchez, and a $1 million peace offering in tow earlier this year. The Washington Post too is reported to have even started leaning more Trump-friendly since Bezos rejigged its editorial leadership.
However, as Team Trump polished its tariff blueprint and raced to save TikTok from a US ban -— which was set to kick in on April 5 unless a domestic buyer emerge — Amazon joined the battle for Tiktok. The ecommerce giant offered to shell out whatever it takes, not just for TikTok’s U.S. operations (the heart of this buyout bid) but for the whole enchilada from its Chinese owners, in a deal that could hit $200 billion.
Amazon’s timing may be Wrong and the likely reason
Amazon’s got the cash to splash, sitting on over $100 billion by year’s end and able to borrow the rest with ease. Yet, it’s missing the Trump camp’s backing, a must-have for U.S. regulatory green lights. Reason “Half baked,” bid, as an insider close to the deal talks reportedly said. Those working on the TikTok deal in the US government wonder why Amazon had to wait till the last minute to join the bidding. “Why’d they wait till the clock was ticking?”, a Trump government insider reportedly said.
Dealmakers reportedly told ‘On The Money’ that carving out TikTok’s U.S. piece has been a grind. The White House has wrestled for months to find a workable path, hemmed in by a U.S. law that bans the app here unless the Chinese let go of the reins.
Chinese government playing tough on Tiktok
The Chinese government, true to form with China Inc, is running the show. The trick is getting its officials to ease up on control—without fully surrendering ownership—to a U.S.-majority investor group. President Xi and his inner circle, though, won’t budge on TikTok’s secret sauce: The algorithm that keeps users hooked with a relentless, personalized video stream.
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