The fate of TikTok in the US stands another chance as Microsoft (NASDAQ: MSFT) is reportedly in talks to acquire the social media platform. While Microsoft has not officially commented, US President Donald Trump confirmed the discussions, hinting at the possibility of a high-stakes bidding war.
This is not the first time Microsoft has pursued TikTok. In 2020, under Trump’s first term, the company attempted to acquire the US operations of the app following an executive order mandating its separation from ByteDance. The deal ultimately fell apart as the administration’s divestment push lost momentum before Trump left office.
Microsoft CEO Satya Nadella later described the experience as “the strangest thing I’ve ever worked on,” citing shifting governmental demands.
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The previous administration pushed for the app’s ban in the US, citing national security risk concerns over potential data access by the Chinese Communist Party, through a law requiring ByteDance to either sell TikTok by January 19, 2025 or face an outright ban.
Following his inauguration, Trump signed an executive order delaying the enforcement of the law by 75 days. The move comes on the heels of a Supreme Court decision that upheld the divestment law, reinforcing the administration’s authority to act against TikTok on national security grounds.
Aside from Microsoft, Trump has also floated the idea of Tesla (NASDAQ: TSLA) CEO Elon Musk purchasing TikTok, though Musk has not publicly addressed the possibility. Meanwhile, AI startup Perplexity AI has made a bold proposal to merge with TikTok, with the government potentially taking up to a 50% ownership stake in the resulting entity.
Chinese officials, who have historically opposed any forced sale of TikTok, have shown signs of softening their stance. The Chinese Foreign Ministry recently suggested it might approve partial ownership changes if they align with “market principles.”
Information for this story was found via Reuters and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
