According to Bloomberg, President Donald Trump announced that Microsoft is in talks to acquire TikTok’s U.S. operations. He indicated there is “great interest in TikTok” and mentioned that there would be “a lot of people bidding on it.”
Trump confirms Microsoft in talks to acquire TikTok’s U.S. operations
Microsoft and Oracle were previously in contention to acquire the ByteDance-owned platform back in 2020 when Trump first urged the social network to divest its Chinese ownership or face a ban. Recently, Trump signed an executive order to delay the TikTok ban deadline by 75 days, instructing the Department of Justice not to enforce penalties associated with the ban. While TikTok has been restored online, it remains unavailable in app stores.
Perplexity AI has recently proposed a merger with TikTok, while billionaire Frank McCourt made a formal offer to purchase the platform. Trump also expressed openness to Elon Musk or Oracle chairman Larry Ellison acquiring TikTok.
With around 170 million American users, Trump expects to make a decision regarding TikTok’s future within the next 30 days. The app was briefly taken offline on January 19 due to a law requiring ByteDance either to sell the app or face a ban, which had been prompted by concerns over user data privacy.
On January 18, TikTok went offline in response to the federal ban but restored service to its U.S. users the following day, citing Trump’s promised executive order. After taking office, Trump signed an order delaying the enforcement of the law, giving ByteDance more time to seek a buyer. Bid estimates for the platform could reach as high as $50 billion, according to CFRA Research’s Angelo Zino.
General Atlantic CEO Bill Ford indicated a deal would be in everyone’s interest, easing initial resistance from ByteDance to selling its U.S. operations. Key potential buyers have emerged in the discussions surrounding TikTok.
Potential buyers include prominent figures
Elon Musk, CEO of Tesla and SpaceX, has been mentioned as a potential buyer by Trump. When asked about Musk’s involvement, Trump affirmed he would be agreeable to Musk purchasing the app. Musk has publicly opposed the ban, referring to it as an exercise in “censorship and government control,” though he has not confirmed any interest in acquiring TikTok.
Content creator Jimmy Donaldson, known as MrBeast, has actively expressed his interest in acquiring TikTok. Donaldson, boasting over 340 million YouTube subscribers and more than 113 million TikTok followers, announced plans to make a formal offer via social media. He has teamed up with a consortium of investors led by Employer.com CEO Jesse Tinsley, which has made an all-cash bid for TikTok’s U.S. operations.
Kevin O’Leary, known for his role on “Shark Tank,” has also highlighted his interest in acquiring TikTok. O’Leary has joined a group led by Project Liberty founder Frank McCourt and has stated that “only one group has the tech to pull this off without breaking a sweat.” He also mentioned a bid of “up to $20 billion” was on the table.
Larry Ellison, co-founder of Oracle, has been mentioned by Trump as a preferred buyer. Trump proposed a negotiation in front of the media, suggesting a deal where Ellison could buy TikTok and give half to the United States. Elision previously expressed his support for the idea, remarking it sounded like a “good deal.” The Trump administration is reportedly in discussions with Oracle and external investors to potentially take over TikTok’s global operations.
Former U.S. Treasury Secretary Steven Mnuchin has also re-entered the conversation surrounding TikTok’s acquisition. Mnuchin stated he is forming an investor group to acquire the platform and highlighted the importance of negotiating with ByteDance now that the situation has changed under Trump. He expressed strong interest in TikTok’s business and proposed plans to enhance its technology.
Perplexity AI made a bid to merge with TikTok, allowing most of ByteDance’s existing investors to keep their stakes. The company also proposed a new arrangement where the U.S. government could own a significant portion of the merged entity after a future IPO.
Trump confirmed that Microsoft is actively involved in the current discussions for TikTok’s U.S. business. Microsoft had been among the top bidders in 2020 but did not complete a sale. Microsoft CEO Satya Nadella previously described the attempt to acquire TikTok as “the strangest thing” he had ever worked on.
Featured image credit: Solen Feyissa/Unsplash
