Trump Encourages Bidding War for TikTok as Microsoft Considers Acquisition

Amid National Security Concerns, New Proposals Emerge for TikTok’s Future

By Ravi
On
Trump Encourages Bidding War for TikTok as Microsoft Considers Acquisition

TPN Correspondent | Washington

US President Donald Trump revealed that Microsoft is in talks to acquire TikTok, urging for a bidding war over the popular social media app. This comes after a series of national security concerns raised about the app’s Chinese owner, ByteDance. Despite these developments, Microsoft declined to comment, and both TikTok and ByteDance have not responded outside of regular business hours.

TikTok, with around 170 million users in the US, faced a brief outage before a law requiring ByteDance to sell the app or face a national ban took effect on January 19. President Trump signed an executive order on January 20, delaying the enforcement of this law for 75 days. He stated that he was in talks with multiple parties regarding the app's acquisition and anticipated making a decision within 30 days.

 

Trump previously indicated that he would be open to allowing billionaire Elon Musk to purchase TikTok. However, Musk has not commented on the offer, leaving speculation to linger. In the latest developments, AI startup Perplexity AI has reportedly proposed a merger with TikTok, with the US government potentially holding up to half of the newly formed company. This proposal adds another layer to the ongoing negotiations.

 

This is not the first time Microsoft has been involved in TikTok's potential acquisition. Back in 2020, Microsoft was a leading bidder to acquire TikTok’s US operations. However, the discussions ultimately ended, and Trump’s push for a divestment was put on hold when he left office. Microsoft CEO Satya Nadella described the deal as the "strangest thing" he had ever worked on, citing the US government's shifting requirements for the sale.

 

As negotiations continue, the future of TikTok in the US remains uncertain, with multiple players, including Microsoft and Perplexity AI, vying for the app amid ongoing concerns over national security.

President Trump revealed that Microsoft is in talks to acquire TikTok, encouraging a bidding war over the app.

AI startup Perplexity AI proposed a merger with TikTok, with the US government potentially holding significant shares in the new company.

This is the second time Microsoft has been involved in TikTok acquisition talks, following the collapse of a previous deal in 2020.

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