The battle for TikTok’s future in the U.S. is heating up again. President Donald Trump confirmed on Monday that Microsoft is in discussions to acquire the social media giant, adding that he hopes to see a bidding war for the platform.
TikTok’s Uncertain Future in the U.S.
TikTok, with its massive 170 million American users, has been under scrutiny due to its Chinese ownership by ByteDance. A new U.S. law that took effect on January 19 requires ByteDance to either sell TikTok over national security concerns or face a potential ban.
However, shortly after taking office on January 20, Trump signed an executive order delaying the law’s enforcement by 75 days, giving potential buyers more time to negotiate a deal.
Microsoft’s Second Attempt at Acquiring TikTok
This isn’t the first time Microsoft has shown interest in acquiring TikTok. During Trump’s first term in 2020, the tech giant was a frontrunner to purchase the platform but ultimately backed out. Microsoft CEO Satya Nadella later called the experience “the strangest thing I’ve ever worked on,” noting that the U.S. government’s requirements suddenly vanished after intense discussions.
Now, with the app’s future once again in question, Microsoft appears to be back in the running. However, neither Microsoft nor TikTok has commented on the ongoing negotiations.
Elon Musk and Other Potential Buyers?
While Microsoft is currently the only confirmed bidder, Trump previously stated that he would be open to Tesla CEO Elon Musk acquiring TikTok. However, Musk has not publicly responded to the idea.
Adding another twist to the situation, AI startup Perplexity AI reportedly proposed a merger with TikTok, offering the U.S. government up to a 50% stake in the new company. If this proposal gains traction, it could create an unexpected shift in ownership.
Why TikTok Is a Hot Commodity
TikTok has become one of the most influential social media platforms globally, dominating short-form video content and attracting billions of views daily. Its vast user base and sophisticated algorithm make it highly valuable to any tech company looking to expand its social media presence.
For Microsoft, acquiring TikTok could solidify its position in the social media space, following its successful acquisition of LinkedIn. However, the deal would likely face significant regulatory scrutiny, especially with concerns about data privacy and national security.
What’s Next?
With Trump giving a 75-day extension on the sale deadline, investors and tech giants are closely watching how the situation unfolds. A finalized deal could reshape the digital landscape, but if no buyer emerges, TikTok may once again find itself on the brink of a U.S. ban.
For now, all eyes are on Microsoft and whether other major tech players will enter the bidding war.
