Amazon’s surprise bid for TikTok is far from a sure deal, because TikTok is far from just a social media app

Amazon’s surprise bid for TikTok isn’t just about snagging the world’s most viral app — it’s about teaming up with the leader of social commerce. TikTok has become a goldmine for businesses of all sizes, with the app now boasting over 15 million merchants worldwide. Last year, 47.2 million Americans bought something through TikTok Shop, while an estimated 40% of all online US shoppers made a purchase through social media altogether.

Amazon, already a retail powerhouse that recently surpassed Walmart in revenue, could tap into TikTok’s viral popularity to boost visibility, expand its customer base, and drive up sales. With a market cap just north of $2 trillion, Amazon is one of the few contenders that could ante up the estimated $40 billion to $50 billion needed to buy TikTok’s US operations. Amazon’s not the only that sees TikTok’s value: on Wednesday, former home shopping giant QVC Group announced its first-ever 24/7 live shopping streams on TikTok. 

Still, despite the obvious upsides, Amazon’s reported bid for TikTok has already drawn some scrutiny online, with one post saying, “An eCommerce giant buying an eCommerce giant (which is what TikTok is at this point) would, in most administrations, raise a few eyebrows.”

It wouldn’t be the first time a partnership between Amazon and TikTok has caught the eye of lawmakers. In November, the House Select Committee on the Chinese Communist Party warned Amazon that an in-app shopping partnership with TikTok was “dangerous and unwise,” citing national security concerns over the app’s potential risks.

President Trump is set to meet with top White House aides Wednesday to discuss TikTok’s future before the app’s divest-or-ban deadline on Saturday.