U.S. President Donald Trump confirmed on Monday that Microsoft is in discussions to acquire TikTok, adding that he would welcome a bidding war over the popular social media app.
TikTok, which has around 170 million American users, was briefly taken offline before a law requiring its Chinese owner, ByteDance, to sell the platform on national security grounds or face a ban took effect on January 19. After assuming office on January 20, Trump signed an executive order delaying the enforcement of the law by 75 days.
Last week, Trump revealed that he was in discussions with multiple parties about TikTok’s future and expected to make a decision within 30 days. He has previously stated that he would be open to billionaire Elon Musk acquiring the app, though Musk has not publicly responded to the suggestion.
On Sunday, AI startup Perplexity AI proposed a merger with TikTok, with the U.S. government potentially receiving up to half of the new company in the future.
This marks the second time Microsoft has been involved in potential talks to acquire TikTok. During Trump’s first term, he ordered TikTok to separate its U.S. operations from ByteDance due to national security concerns. Microsoft emerged as a leading contender in 2020, but negotiations ultimately fell through, and Trump’s divestment efforts were abandoned when he left office.
Reflecting on the failed deal, Microsoft CEO Satya Nadella later called it “the strangest thing I’ve ever worked on,” adding that the U.S. government had set specific requirements before abruptly dropping the matter in 2021.
