• by Laurie Sullivan , Staff Writer @lauriesullivan, April 2, 2025

Everyone is familiar with Amazon and likely can understand why the company may want to acquire TikTok, but what about the strategy behind AppLovin's bid? The two companies today independently made surprise bids to acquire TikTok just days before the video app faces a potential shutdown in the U.S.

Will the algorithm come with the sale? Forrester Principal Analyst Kelsey Chickering said "TikTok without its algorithm is like Harry Potter without his wand — it’s simply not as powerful."

TikTok operates on a content graph, not a social graph, Chickering added -- which means it analyzes thousands of user signals to determine what content and creators the user will want to watch, making it hyper relevant and highly addictive.

Forrester data shows that 31% of U.S. online adults consider TikTok to be addictive, more than any other social-media platform. 

Adam Foroughi, John Krystynak, and Andrew Karam founded AppLovin in 2012. Now the company owns a software platform for advertisers and a publishing studio named lion Studios and recently acquired Adjust, a mobile measurement and analytics company that has begun to release many data reports.

“AppLovin’s interest in TikTok is about catching up in the GenAI arms race," said Tony Gonzalez, founder of Mundial Media, a contextual marketing platform that helps brands connect authentically with diverse audiences. "Google, Meta, Amazon, and Microsoft are investing heavily in infrastructure to dominate the future of personalized media."

For players without that scale, acquiring a high-engagement platform like TikTok becomes a fast track to compete, he added. But as these ecosystems consolidate, it also reinforces the need for a strong, open internet -- where diverse voices, culturally relevant content, and transparent advertising can thrive.”

AppLovin also acquired Wurl in 2022, which is focused on connected television (CTV) distribution, monetization and advertising, to help content publishers and streamers reach viewers.

The combination of all these businesses -- including TikTok -- would give AppLovin the ability to reach the company's massive user base as it strengthens its hold on CTV and measurement. 

In an earlier interview about connecting CTV with performance advertising, Dave Bernath, GM of the Americas at Wurl, wrote in a email to MediaPost that "historically, CTV advertising, like traditional television, has been associated with the top of the funnel – a medium for brand building as opposed to driving lower-funnel performance KPIs."

He explained how that perception is changing. Better technology and innovation. He pointed to advancements in data, AI-driven targeting, and interactive ad formats, and how each has begun to close the performance gap on streaming TV.

Digital channels now make up nearly 70% of overall ad budgets, driven largely by performance marketing campaigns.

More than half of buyers are looking to increase their spend on performance alone this year. Even so, Wurl’s data shows fill rates on CTV continue to lag, suggesting ad dollars haven’t moved to streaming as quickly as other digital mediums, Bernath said.

When MediaPost asked how performance and CTV fit together, Bernath said this all points to a big opportunity for CTV to continue to close the performance gap and help TV reclaim its share of ad spend.

What if AppLovin had the opportunity to turn TikTok into a streaming TV network?

The bids come as TikTok faces an April 5 deadline by the U.S. to alter its ownership structure or face a ban. U.S. lawmakers have voiced national security concerns regarding the app’s Chinese ownership, leading to legislation that mandates a sale.