On Monday evening, President Donald Trump confirmed that Microsoft is among the U.S. companies interested in acquiring TikTok to prevent a potential ban that could take effect in April. During a press briefing aboard Air Force One, Trump responded affirmatively when asked about Microsoft's involvement in the bidding process for the popular video-sharing app.
In his statement, Trump mentioned that there are additional companies showing interest in buying TikTok, though he refrained from providing specific names. He expressed enthusiasm for competitive bidding, asserting that it often leads to favorable deals. This conversation occurred while Trump was returning to Washington from Miami, where a conference involving Republican House members was held.
Microsoft has chosen not to comment publicly on the situation, and TikTok representatives have not provided an immediate response to inquiries regarding the matter. Recently, Trump extended TikTok's deadline for securing a change in ownership that complies with government requirements, moving the deadline from January 19 to April 4, granting the company an additional 75 days.
The President has emphasized that he is seeking an ultimate purchaser who would allow for a 50% U.S. stake in TikTok, which is owned by the Chinese company ByteDance. However, the specifics of this arrangement remain unclear, particularly whether control would be positioned under another U.S. entity or potentially even the government itself.
In a recent development, the artificial intelligence startup Perplexity AI presented a proposal to ByteDance that would enable the U.S. government to hold up to a 50% ownership in a new entity merging Perplexity with TikTok's U.S. operations, as reported by a source familiar with the situation.
In addition to Microsoft, several other prominent investors have publicly expressed their eagerness to purchase TikTok's U.S. platform. These include billionaire Frank McCourt and former Treasury Secretary Steven Mnuchin, both of whom are actively pursuing opportunities in this regard. Trump has indicated that he has held private discussions with numerous individuals about TikTok's future ownership.
After the bipartisan legislation was enacted by former President Joe Biden in April, ByteDance stated its intention to resist selling the platform, leading to protracted legal challenges against the statute. The Chinese government has also voiced its objections to the divestment efforts but seems to have softened its stance in recent months.
Bill Ford, chairman of the global investment firm General Atlantic and a board member of ByteDance, mentioned in media interviews last week that the company is ready to explore solutions with both the Trump administration and Chinese officials to ensure TikTok's availability in the U.S. He suggested that a resolution might be possible without requiring a full divestiture from ByteDance.
The national security implications of Chinese ownership of TikTok have raised concerns among lawmakers from both parties. These officials worry about the potential for manipulation of the platform, which boasts over 170 million users in the U.S. Despite previously advocating for a ban on TikTok, Trump reversed his position last year, crediting the platform with enhancing his appeal to younger voters during the last presidential election.
Previously, Microsoft, alongside Walmart, attempted to acquire TikTok during Trump's first term when he sought to ban the app. Microsoft CEO Satya Nadella later referred to that bid as the “strangest thing” he had ever worked on, highlighting the complexities surrounding the acquisition discussions.
