U.S. President Donald Trump revealed on Monday that Microsoft is in discussions to acquire the social media app TikTok. Trump expressed his interest in seeing a competitive bidding process for the popular platform, which has about 170 million American users.
Microsoft Declines to Comment on Negotiations Regarding TikTok
While President Trump shared details of Microsoft’s involvement, the tech giant has not commented on the matter. TikTok and its Chinese parent company ByteDance have also remained silent, with no immediate response to requests for comment from Reuters.
The discussion arises after a law came into effect on January 19, requiring ByteDance to sell TikTok’s U.S. operations on national security grounds or face a ban. Trump, upon taking office on January 20, issued an executive order delaying enforcement of the law by 75 days to explore other options.
Multiple Buyers in the Mix For TikTok
Trump disclosed that he has been in talks with various parties interested in acquiring TikTok and expects a decision on the app’s future within 30 days.
Previously, Trump mentioned he would support Tesla CEO Elon Musk purchasing TikTok, should Musk be interested. However, Musk has not publicly addressed the idea.
Adding to the mix, AI startup Perplexity AI proposed a merger with TikTok over the weekend. According to a source, the deal would allow the U.S. government to take up to 50% ownership of the new company in the future.
TikTok: A History of National Security Concerns
This isn’t the first time Microsoft has shown interest in TikTok. During Trump’s first term, the former president ordered TikTok to separate its U.S. operations from ByteDance, citing national security concerns.
Microsoft emerged as a leading bidder in 2020 but failed to finalize the deal. The divestment push faded after Trump left office in early 2021.
Reflecting on the experience, Microsoft CEO Satya Nadella called it “the strangest thing I’ve ever worked on.” He noted in 2021 that the U.S. government had a specific set of requirements for the deal, but the matter ultimately fizzled out.
As the 30-day timeline approaches, the fate of TikTok remains uncertain. Whether Microsoft or another buyer steps forward, the ongoing negotiations signal the app’s pivotal role in the tech landscape and its perceived risks to national security.
