Amazon's Stock Plummets Amid Last-Minute TikTok Acquisition Bid

On April 3, Amazon's (AMZN) share experienced a notable decline, dropping by 8.98%, reaching its lowest point since September 2024 during intraday trading. Meanwhile, a significant development emerged as Amazon expressed interest in acquiring TikTok at the eleventh hour, just days before the U.S. government's ban on TikTok was set to take effect on April 5.

A U.S. official, who spoke on condition of anonymity, confirmed that Amazon had made this proposal in a letter to Vice President Vance and Commerce Secretary Lutnick. Despite Amazon's bid, neither the company nor TikTok provided immediate comments on the matter as the deadline loomed closer. This move surfaces at a critical juncture as President Trump prepared to meet senior officials to discuss the final deadline for TikTok's sale.

Potential buyers for TikTok have been lining up, with well-known entities like Oracle and Blackstone Group reportedly showing interest in recent months. These bidders reflect a variety of strategic interests in acquiring the popular video-sharing platform, which counts 1.7 million American users amongst its massive global user base.

Amidst these developments, TikTok is under pressure to reach an agreement for its sale, as dictated by the previously established U.S. legal mandate, or face an operational shutdown in the country. Despite accusations from U.S. lawmakers concerning data security risks associated with TikTok's Chinese ownership, TikTok has consistently denied these allegations.

The Trump administration has hinted at potential leniency, such as possibly extending the sale deadline again, particularly if there is perceived progress in negotiations. The President has also suggested considering trade measures affecting China, showcasing his willingness to facilitate a deal before the cut-off date.