Microsoft in Talks to Acquire TikTok Amid US Government Concerns
Microsoft is reportedly among the US companies exploring the acquisition of TikTok, a popular video-sharing app owned by Beijing-based ByteDance. This comes as the Trump administration seeks to address national security concerns related to TikTok's Chinese ownership.
President Trump confirmed Microsoft's interest in purchasing TikTok, stating that it is one of several companies seeking to acquire the app. Trump has extended the deadline for TikTok to find new ownership from January 19 to April 4.
According to reports, Trump has expressed interest in the US acquiring a 50% stake in TikTok. However, the specifics of this proposal remain unclear.
Perplexity AI, an artificial intelligence startup, has also proposed a merger with TikTok's US business, with the US government owning up to 50% of the combined entity.
Other potential investors who have expressed interest in acquiring TikTok's US platform include Frank McCourt and Steven Mnuchin.
While ByteDance initially opposed the US government's divestment push, it has recently softened its stance. Bill Ford, a ByteDance board member, has indicated the company's willingness to engage with both the Trump administration and Chinese officials to find a mutually acceptable solution.
Lawmakers from both parties have raised concerns about Chinese ownership of TikTok due to potential national security risks. TikTok has over 170 million monthly active users in the US.
Microsoft and Walmart previously made an unsuccessful bid for TikTok during Trump's first term. Microsoft CEO Satya Nadella described the experience as "the strangest thing I've ever worked on."