Microsoft in Talks to Acquire TikTok, Says Trump

303

On 27 January 2025, President Donald Trump announced that Microsoft is in discussions to acquire TikTok, the popular video-sharing platform owned by China’s ByteDance.

He expressed a desire to see a “bidding war” over the app, suggesting that other companies might also be interested in its acquisition.

This development follows legislative actions requiring ByteDance to sell TikTok or face a ban in the United States. Initially set to take effect on 19 January, the enforcement of this law was delayed by a 75-day executive order signed by President Trump.

TikTok, which has approximately 170 million users in the United States, faced a temporary shutdown before the law compelling ByteDance to divest the platform on national security grounds came into effect.

After taking office on 20 January, Trump signed the executive order delaying the enforcement of the law. Speaking last week, he revealed that he had been in discussions with multiple parties about TikTok’s acquisition and anticipated deciding the app’s future within 30 days.

Also Read: President Trump Delays TikTok Ban to Allow Negotiations

Previously, Trump expressed openness to billionaire Elon Musk acquiring TikTok if the Tesla (TSLA.O) CEO were interested, though Musk has not publicly commented on the suggestion.

More recently, AI startup Perplexity AI submitted a proposal on Sunday to merge with TikTok, offering the U.S. government a stake of up to 50% in the new entity, according to a source who spoke to Reuters.

This is the second time Microsoft has been considered a potential buyer for TikTok. In 2020, during Trump’s first term, the administration ordered TikTok to separate its U.S. operations from ByteDance due to national security concerns. Microsoft emerged as a leading bidder at the time, but negotiations eventually fell through.

Reflecting on the 2020 discussions, Microsoft CEO Satya Nadella described the process as “the strangest thing I’ve ever worked on.”

The revived talks underscore ongoing concerns about TikTok’s ownership and its implications for national security, with various stakeholders seeking a resolution.

REUTERS/Chidimma Gold

Comments are closed.