Microsoft in Talks to Acquire TikTok, Trump Confirms
In a significant development in the ongoing saga surrounding TikTok’s future in the United States, President Donald Trump confirmed on Monday that Microsoft is in talks to acquire the popular video-sharing platform. The announcement comes amid heightened concerns over national security and the app’s Chinese ownership, which have fueled years of political and legal battles.
A High-Stakes Deal
TikTok, owned by Beijing-based ByteDance, boasts approximately 170 million users in the U.S., making it a cornerstone of the digital ad market and a cultural phenomenon, especially among younger audiences. According to a 2023 Pew Research Center survey, 63% of U.S. teens aged 13 to 17 use TikTok, surpassing even Instagram’s 59% penetration rate.
President Trump, speaking to reporters on Monday, revealed that Microsoft is among the companies vying to acquire TikTok’s U.S. operations. “I would say yes,” Trump responded when asked if Microsoft was in discussions, adding that he would like to see a “bidding war” for the app.
The potential deal, estimated to be worth between $40 billion and $50 billion, could see the U.S. government securing a 50% ownership stake in a joint venture, effectively sidelining Chinese involvement. This move aligns with Trump’s long-standing stance on minimizing Chinese influence over the platform, which he has repeatedly cited as a national security threat.
A Rocky Road for TikTok
TikTok’s journey in the U.S. has been fraught with challenges. In 2020, during Trump’s first term, the app faced a similar ultimatum: sell its U.S. operations or face a ban. Microsoft emerged as a top contender at the time, but the deal collapsed, with CEO Satya Nadella later describing the negotiations as “the strangest thing I’ve ever worked on”.
More recently, TikTok briefly went offline in the U.S. on January 18, 2025, to comply with a law requiring ByteDance to divest from the platform or face a ban. However, Trump, who took office on January 20, signed an executive order delaying enforcement of the law by 75 days, providing a temporary reprieve for the app and its millions of users.
Competing Interests and Bidders
Microsoft is not the only player in the race for TikTok. Other notable contenders include Oracle, which already provides the backbone for TikTok’s web infrastructure, and AI startup Perplexity, which has proposed a merger that would grant the U.S. government a significant stake in the new entity.
High-profile figures such as Tesla CEO Elon Musk, Oracle co-founder Larry Ellison, and real estate billionaire Frank McCourt have also been linked to potential bids, though Musk has yet to publicly comment on the matter.
Political and Legal Hurdles
The acquisition talks are unfolding against a backdrop of bipartisan concerns over TikTok’s data practices and its potential to be exploited by the Chinese government. Former President Joe Biden signed a law last year mandating ByteDance to divest from TikTok by January 19, 2025, or face a ban. The U.S. Supreme Court upheld the law, rejecting arguments that it violated free speech protections.
Trump’s executive order delaying the ban has bought time for negotiations, but legal experts caution that the move cannot override the congressional deadline. A key challenge for any deal will be ensuring that ByteDance has no operational control over TikTok, with binding agreements needed to prevent Chinese interference.
What’s Next for TikTok?
With Trump expecting a decision on TikTok’s future within the next 30 days, the coming weeks will be critical for the app’s fate. Microsoft’s involvement signals a renewed effort to resolve the long-standing impasse, but the complexity of the deal and the competing interests at play suggest that the road ahead will be anything but smooth.
As the world watches, the outcome of these negotiations could reshape the social media landscape and set a precedent for how governments address the intersection of technology, national security, and global commerce.
