After almost 5 years, Microsoft is reportedly back to the acquisition table for one of the world’s biggest social media companies — TikTok. Or to be more precise the US operations of China’s TikTok. Microsoft Corp is in discussions to acquire the US arm of ByteDance Ltd’s TikTok, according to the US President Donald Trump, who commented on the matter Monday night (January 27) without providing further details.
Microsoft and Oracle Corp were previously contenders to acquire TikTok in the year 2020, following Trump’s push for ByteDance to sell its US operations or face a ban over national security concerns.At an event in September 2021, Microsoft CEO Satya Nadella talked about the company’s failed attempt to take over TikTok’s US operation. Referrring to the deal, he said that it was “the strangest thing I’ve ever sort of worked on”.
What President Donald Trump said on Microsoft buying TikTok
When asked by reporters aboard Air Force One whether Microsoft was negotiating a deal, Trump responded, “I would say yes. A lot of interest in TikTok. There’s great interest in TikTok.” Earlier on Monday, during an event in Florida with Republican lawmakers, Trump hinted at ongoing discussions regarding TikTok’s future. While he initially advocated for banning the app due to security risks, his stance appears to have softened, partially influenced by the popularity of pro-Trump content on the platform. Trump has granted ByteDance a 75-day deadline to sell its U.S. operations to a domestic company and encouraged more bidders to enter the fray.
“I like bidding wars because you get the best deal,” Trump added. “So if there’s a bidding war, that’s a good thing.”
“We’ll see what happens,” Trump said during his speech. “We’re going to have a lot of people bidding on it, and if we can save all that voice and all the jobs—and keep China out of it, because we don’t want China involved—we’ll see where it goes.”
When Microsoft wanted to buy TikTok in 2020
In August 2020, as President Trump threatened to ban TikTok, the Chinese video app’s owner ByteDance reportedly approached Microsoft as a possible partner. The plan was to force the sale of the US part of the business over concerns that it was a threat to national security. Later TikTok chose rival Oracle – although that deal too could never happened. In an interview at the Code Conference in 2021, Microsoft CEO Satya Nadella said that he was “kind of intrigued” when TikTok approached him.
What Microsoft said on buying Tiktok now
Microsoft has declined to comment on recent reports of its involvement.
The short-form video app, which boasts over 170 million American users, has attracted attention from various players in the U.S. tech and business sectors. AI startup Perplexity recently submitted a bid to merge with TikTok’s U.S. operations, while billionaire Frank McCourt, former owner of the Los Angeles Dodgers, made a formal offer earlier this month.