U.S. President Donald Trump revealed on Monday that Microsoft is in discussions to acquire TikTok, expressing his preference for a competitive bidding process over the popular social media app.
Microsoft, TikTok, and ByteDance Remain Silent on Acquisition Talks
While Microsoft has declined to comment on the matter, neither TikTok nor its Chinese parent company, ByteDance, has responded to Reuters’ requests for statements outside regular business hours.
With approximately 170 million American users, TikTok briefly went offline ahead of a law that requires ByteDance to either sell its U.S. operations on national security grounds or face a potential ban. The law was set to take effect on January 19. However, after taking office on January 20, Trump signed an executive order delaying the law’s enforcement by 75 days.
Trump in Negotiations Over TikTok’s Future
Last week, Trump confirmed that he is in talks with multiple parties regarding TikTok’s ownership and expects to make a decision within 30 days. He previously suggested that billionaire Elon Musk could purchase the app if the Tesla (TSLA.O) CEO was interested. However, Musk has not publicly responded to this proposition.
Perplexity AI Joins the Race for TikTok
Adding to the mix, AI startup Perplexity AI reportedly submitted a proposal on Sunday to merge with TikTok. According to a source cited by Reuters, the proposal includes a provision for the U.S. government to receive up to half of the new entity in the future.
Microsoft’s Second Attempt at Acquiring TikTok
This is not the first time Microsoft has attempted to acquire TikTok. During Trump’s first term, his administration ordered TikTok to separate its U.S. operations from ByteDance over national security concerns.
Back in 2020, Microsoft emerged as a top bidder for TikTok, but negotiations collapsed, and the divestment push ended shortly after Trump left office. Reflecting on the situation, Microsoft CEO Satya Nadella later described the deal as the “strangest thing I’ve ever worked on.”
He further explained in 2021 that the U.S. government had a specific set of requirements, which eventually disappeared without explanation.
With Microsoft back in the conversation and new players like Perplexity AI emerging, TikTok’s future remains uncertain. However, the app’s massive U.S. user base and ongoing regulatory scrutiny suggest that the battle for TikTok is far from over. “strangest thing I’ve ever worked on.”
The U.S. government had a “particular set of requirements and then it just disappeared,” he said in 2021.
What Would Happen if Microsoft Buys TikTok?
If Microsoft successfully acquires TikTok, it could significantly reshape the social media landscape. The deal would provide Microsoft with a strong foothold in the short-form video market, allowing it to compete more directly with Meta (Facebook, Instagram) and Google (YouTube). Additionally, TikTok’s vast user data and advanced AI-driven recommendation algorithm could enhance Microsoft’s advertising and cloud computing businesses. However, regulatory scrutiny is likely to follow, as lawmakers may raise concerns over data privacy, content moderation, and the potential monopolization of social media.
With Microsoft back in the conversation and new players like Perplexity AI emerging, TikTok’s future remains uncertain. However, the app’s massive U.S. user base and ongoing regulatory scrutiny suggest that the battle for TikTok is far from over.
Via: Reuters
