Microsoft is reportedly in discussions to acquire the popular social media platform TikTok, according to a statement made by former U.S. President Donald Trump. This announcement reignites the possibility of a renewed bidding war for the app, which boasts approximately 170 million American users.
This development follows a tumultuous period for TikTok in the U.S. The platform faced a near ban in January 2024 under a law compelling its Chinese owner, ByteDance, to divest its U.S. operations due to national security concerns. A brief outage preceded the law’s effective date of January 19th. Former President Trump subsequently signed an executive order postponing enforcement by 75 days.
Just last week, Trump indicated ongoing negotiations with several potential buyers for TikTok, promising a decision within 30 days. He had also previously suggested Tesla CEO Elon Musk as a suitable acquirer, though Musk has remained silent on the matter. Adding another layer of complexity, AI startup Perplexity AI recently proposed a merger with TikTok, offering the U.S. government up to a 50% stake in the resulting entity.
This marks the second time Microsoft has engaged in acquisition talks with TikTok. In 2020, Microsoft emerged as a leading contender during a similar push for divestment by the Trump administration. However, those negotiations ultimately faltered, and the divestment effort ceased with Trump’s departure from office. Microsoft CEO Satya Nadella later described the 2020 deal as the “strangest thing I’ve ever worked on,” citing shifting requirements from the U.S. government.
The revival of Microsoft’s interest in acquiring TikTok signals a potentially significant shift in the social media landscape. While Microsoft declined to comment on the current talks, and TikTok and ByteDance have not yet responded, the implications of a successful acquisition could be substantial. The outcome of these discussions remains uncertain, but the renewed interest underscores TikTok’s enduring popularity and strategic value in the digital realm. This potential acquisition could reshape the competitive dynamics of the social media industry and significantly impact the future of online content creation and consumption.
