On Monday evening, former President Donald Trump revealed that Microsoft is among several U.S. companies looking to acquire TikTok, as the application faces the possibility of being banned in April. Trump confirmed to reporters that Microsoft is indeed among the interested parties seeking to facilitate a transition in ownership to ensure the popular app remains operational in the U.S.
When asked about other potential buyers, Trump mentioned that there were additional companies interested but did not disclose their names. He expressed his preference for competitive bidding, stating, “I like bidding wars because you make your best deals,” while speaking to the press aboard Air Force One, returning to Washington from a conference in Miami.
Microsoft opted not to comment on the situation, and TikTok representatives did not reply to requests for statements regarding the matter. Recently, in one of his initial actions after taking office last week, Trump extended the deadline for TikTok to secure new ownership that complies with governmental regulations by 75 days, now set for April 4 in place of January 19.
Trump is seeking an ownership structure where the U.S. government or a domestic entity would hold a 50% stake in TikTok, which is currently owned by the China-based company ByteDance. However, the precise nature of this ownership remains unclear, and whether it would involve complete control of the app by the U.S. government is still uncertain.
Additionally, an artificial intelligence startup named Perplexity AI has recently proposed to ByteDance a plan that would create a new entity where the U.S. government could hold a significant ownership stake of up to 50% while merging its operations with TikTok’s U.S. division, according to an insider familiar with the discussions.
Other investors, like billionaire Frank McCourt and Steven Mnuchin, who previously served as the Treasury Secretary under Trump, have publicly expressed interest in acquiring TikTok’s U.S. segment. Trump also indicated that he has had private discussions with “many people” regarding the company’s future.
In April, after the bipartisan legislation was signed by former President Joe Biden, ByteDance stated it had no intent to sell TikTok and launched a legal challenge against the law. Furthermore, China has criticized the U.S. attempts at a divestment, although its stance seems to have softened somewhat in recent developments.
Bill Ford, chairman of the global investment firm General Atlantic and a member of the ByteDance board, mentioned in media interviews last week that ByteDance is open to collaborating with both the Trump administration and Chinese officials to find a solution that keeps TikTok operational. He also proposed that a complete divestiture might not be the only option available.
Lawmakers from both parties have voiced national security apprehensions regarding the Chinese ownership of TikTok, which boasts over 170 million users in the U.S. Trump, who initially supported a ban on TikTok, altered his perspective last year, acknowledging the app’s role in engaging younger voters during the recent election cycle.
In Trump’s first term, Microsoft and Walmart attempted to acquire TikTok but were ultimately unsuccessful after Trump’s administration sought to shut down the app. Microsoft’s CEO Satya Nadella later characterized the acquisition attempt as the “strangest thing I’ve ever worked on.”
