Is Amazon Angling To Buy TikTok? The Two Companies’ Ties Deepen

Forbes

Amazon’s turning to TikTok to tap into social, and TikTok’s turning to Amazon to strengthen its burgeoning e-commerce business. Insiders say that these “frenemies” locking arms could help thwart a ban.  Read the full story on Forbes: https://www.forbes.com/sites/alexandralevine/2024/09/13/amazon-tiktok-ban-acquisition-bytedance/  Subscribe to FORBES: https://www.youtube.com/user/Forbes?sub_confirmation=1  Fuel your success with Forbes. Gain unlimited access to premium journalism, including breaking news, groundbreaking in-depth reported stories, daily digests and more. Plus, members get a front-row seat at members-only events with leading thinkers and doers, access to premium video that can help you get ahead, an ad-light experience, early access to select products including NFT drops and more:  https://account.forbes.com/membership/?utm_source=youtube&utm_medium=display&utm_campaign=growth_non-sub_paid_subscribe_ytdescript  Stay Connected Forbes newsletters: https://newsletters.editorial.forbes.com Forbes on Facebook: http://fb.com/forbes Forbes Video on Twitter: http://www.twitter.com/forbes Forbes Video on Instagram: http://instagram.com/forbes More From Forbes:  http://forbes.com  Forbes covers the intersection of entrepreneurship, wealth, technology, business and lifestyle with a focus on people and success.

Transcript

00:00Today on Forbes, is Amazon angling to buy TikTok?

00:05The two companies' ties deepen.

00:08As the January deadline approaches

00:10for TikTok to be sold to an American firm

00:12or face a nationwide ban,

00:14the Chinese-owned social media giant

00:16is quietly deepening its ties to a major company

00:19that is central to Americans' daily life

00:21and one of its biggest rivals, Amazon.

00:25It's a strategic move that will make it harder

00:27to shut down TikTok here,

00:28industry insiders told Forbes.

00:31Some believe it's a sign that Amazon

00:33is on the table as a possible buyer.

00:35Rowy Zelser, who until recently was TikTok's

00:38head of sales for products and services

00:40for more than three years, said,

00:42quote,

00:43the writing is on the wall.

00:46And even if that acquisition doesn't come to pass,

00:48Amazon's cozy relationship with

00:50and growing reliance on TikTok

00:52will likely make the chorus of voices

00:54fighting a ban even louder.

00:56Zelser told Forbes, quote,

00:59now it's not just small businesses and influencers

01:01being enraged on this ban,

01:03but it's also Amazon.

01:04It's a big buy-in on TikTok's side.

01:06It's a very strategic move to deepen their relationship

01:09in the U.S. economy.

01:11TikTok declined to comment.

01:13Amazon spokesperson Maria Baschetti

01:16said the company does not comment

01:17on mergers and acquisitions or on speculation.

01:21Oral arguments begin this week

01:23in the high-stakes legal fight

01:24between the U.S. government and TikTok

01:26that could lead to this country

01:27barring a foreign-owned social media app

01:30for the first time ever.

01:32In April, President Joe Biden signed into law

01:34a bill forcing TikTok's China-based parent, ByteDance,

01:38to divest its crown jewel to an American company

01:40over national security concerns

01:42or face a shutdown early next year.

01:45In May, TikTok and ByteDance filed a lawsuit

01:48challenging that law,

01:49calling it unconstitutional

01:51and a thinly-veiled attempt

01:53to simply ban the wildly popular platform.

01:56Meanwhile, a group of TikTok creators

01:58filed their own suit against the U.S. government.

02:01Now, with the app's future in limbo

02:03and four months left on the clock for a sale,

02:06the U.S. Court of Appeals in Washington

02:08will hear the parties challenging the Justice Department.

02:11In the midst of this crossfire,

02:13TikTok has been making subtle moves

02:15to further entrench itself

02:16in the country threatening to boot it.

02:19It has heavily promoted

02:20its little-scrutinized sister app, CapCut,

02:22which has continued growing in the U.S.

02:25It has doubled down on TikTok's shop here,

02:27scrapping expansion plans abroad

02:29to focus instead on increasing its stateside footprint.

02:33And just last month,

02:34TikTok announced a major partnership with Amazon,

02:37enabling people to browse and buy Amazon products on TikTok

02:41without ever leaving the app.

02:43Users who see ads for Amazon items in their For You feeds

02:47can now link their TikTok and Amazon accounts

02:49to easily purchase them inside TikTok.

02:52Previously, they'd have to navigate away to Amazon

02:55to do so.

02:56Once the accounts are synced,

02:58they remain connected unless users proactively unlink them.

03:02Amazon has also urged its own influencers

03:05to do more to amplify Amazon's sellers on TikTok.

03:09Amazon's Boschetti said, quote,

03:12"'Amazon is making it more convenient

03:14for customers to shop in social media

03:16by expanding in-app shopping in Facebook,

03:18Instagram, Pinterest, Snapchat, and TikTok.

03:22In-app shopping with Amazon

03:23is available for select products

03:25advertised on these popular social media apps

03:27and sold by Amazon or independent sellers in Amazon's store."

03:32The TikTok team-up might seem unusual at first glance,

03:35as the companies are among each other's

03:37biggest e-commerce competitors,

03:39but there are clear benefits to working together.

03:42Zelzer, the recent TikTok sales head,

03:44described the companies as so-called, quote,

03:46"'frenemies' with benefits,

03:49two giants pursuing a social e-commerce land grab

03:52from different directions."

03:53He said, quote,

03:55"'Amazon has come from a background of big e-commerce.

03:58How do I tap into social?'

04:00TikTok is coming in from,

04:02"'I'm killing it on social, engagement,

04:04and I have all these influencers and creators.

04:06How do I tap into e-commerce?''

04:10For full coverage,

04:10check out Alexandra Eslavín's piece on Forbes.com.

04:16This is Kieran Meadows from Forbes.

04:18Thanks for tuning in.

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