On Monday evening, President Donald Trump confirmed that Microsoft is among the U.S. companies expressing interest in acquiring TikTok in order to avert a potential ban of the app, which could be enforced as soon as April. Trump stated his belief that Microsoft is indeed pursuing a deal, although he refrained from naming other companies that might also be interested in purchasing the Chinese-owned app, which is managed by ByteDance.
While speaking to reporters aboard Air Force One during his return flight from Miami, where Republican House members were attending a conference, Trump remarked, "I like bidding wars because you make your best deals." This statement underscores his view that competition among potential buyers could yield favorable outcomes for the negotiations surrounding TikTok’s ownership.
Following his recent inauguration, Trump extended TikTok's deadline for achieving new ownership by 75 days, moving it from January 19 to April 4. The extension signifies a continued effort to find a buyer that aligns with the government’s stipulations, particularly the requirement for the U.S. to maintain a significant interest—specifically a 50% stake—in the app.
In recent developments, Trump mentioned that an artificial intelligence startup, Perplexity AI, has proposed a new arrangement to ByteDance. This plan would allow the U.S. government to own up to 50% of a newly formed entity that would merge TikTok's U.S. operations with Perplexity AI. This collaboration indicates a potential route to address regulatory concerns while keeping TikTok operational in the U.S.
Interest in acquiring TikTok has also attracted various prominent investors, including billionaire Frank McCourt and Trump’s former Treasury Secretary, Steven Mnuchin. Trump has indicated that he has been in discussions with numerous individuals about the potential purchase of the platform, highlighting the widespread engagement among prospective buyers.
Despite previous legal challenges and a refusal to sell the platform, ByteDance, after the bipartisan law signed by former President Joe Biden in April, has experienced shifts in its position. This law necessitates the divestment of TikTok due to ongoing national security concerns regarding Chinese ownership. China has publicly opposed the U.S. government's push for a divestiture but appears to be softening its stance in light of recent dialogues.
Last week, Bill Ford, chairman of General Atlantic—a global investing firm and a board member of ByteDance—voiced that the company is willing to work with both the Trump administration and Chinese officials to identify a viable solution to keep TikTok active in the U.S. He alluded to the possibility of arrangements that do not require a complete divestment by ByteDance.
Lawmakers from both political parties have raised alarms about the risks associated with Chinese ownership and the potential for manipulation on a platform that boasts over 170 million users in the United States. As the conversation around TikTok’s future continues, it is clear that both the app's operational status and its ownership are of significant concern to U.S. officials.
Additionally, Trump's previously supportive stance towards a potential TikTok ban shifted when he reversed this position last year, crediting the platform with aiding his outreach to younger voters in the recent presidential election. It's noteworthy that Microsoft, in collaboration with Walmart, had previously attempted to purchase TikTok during Trump's initial term; however, that bid ultimately failed amid the administration's efforts to ban the app. Microsoft CEO Satya Nadella has even described those discussions as the "strangest thing I've ever worked on."
