In a strategic move to strengthen its e-commerce business and potentially thwart a ban, TikTok is deepening its ties with Amazon. As the January deadline approaches for TikTok to be sold to an American firm or face a nationwide ban, insiders believe that Amazon’s cozy relationship with TikTok could make it harder to shut down the popular social media platform in the US. Some speculate that Amazon might even be on the table as a possible buyer, as the two companies continue to deepen their relationship in the US economy.
The legal battle between the US government and TikTok is intensifying, with oral arguments set to begin next week. President Joe Biden signed a law in April requiring the Chinese-owned parent company ByteDance to divest TikTok to an American company or face a shutdown early next year. In response, TikTok and ByteDance have filed lawsuits challenging the legality of the law, while also making moves to solidify their presence in the US market. TikTok’s partnership with Amazon, which allows users to browse and buy Amazon products within the TikTok app, is a strategic move to further entrench itself in the country and engage with American consumers.
Amazon and TikTok, despite being e-commerce competitors, have found benefits in working together. Both companies have attempted to enter each other’s spaces, with Amazon creating Amazon Inspire and TikTok launching TikTok Shop. By partnering with TikTok, Amazon gains access to the platform’s younger Gen Z audience, while TikTok benefits from Amazon’s credibility and trust in e-commerce. The collaboration between the two companies is being managed by a team referred to as “Team Amazon” within TikTok, with employees from Amazon playing key roles in building TikTok’s Amazon business.
This partnership with Amazon could potentially lead to an acquisition by the e-commerce giant. If ByteDance agrees to spin off TikTok’s US entity, Amazon’s integration with the company could be a precursor to a potential acquisition. The collaboration between TikTok and Amazon is seen as a smart move that will benefit both companies, but it also raises concerns about the potential codependency that could arise, with Amazon relying heavily on TikTok for customer acquisition.
Overall, the deepening relationship between TikTok and Amazon is seen as a strategic move to strengthen both companies’ positions in the e-commerce and social media landscape. Despite being competitors, the partnership between the two giants is seen as mutually beneficial and could potentially lead to further integration or even an acquisition in the future. As the legal battle over TikTok’s ownership and potential ban continues, the collaboration with Amazon could prove to be a pivotal factor in the company’s future in the US market.
