Microsoft Among U.S. Companies Eyed for TikTok Ownership
Microsoft Corporation (MSFT) is reportedly one of several U.S.-based companies being considered to acquire TikTok, according to President Donald Trump.
Trump stated that Microsoft had expressed interest in assuming control of the popular video-sharing app, a requirement set forth by Congress to prevent its potential ban in April. Other unnamed companies have also expressed interest, with Trump noting his preference for "bidding wars" to secure favorable deals.
Microsoft has declined to comment while TikTok representatives have yet to respond to requests for comment.
In a recent executive order, Trump extended the deadline for TikTok to secure new ownership by 75 days, to April 4, 2022. The President has indicated a desire for the buyer to grant the U.S. a 50% stake in the company, which is currently owned by Chinese-based ByteDance.
Perplexity AI, an artificial intelligence startup, has proposed a plan to merge its operations with TikTok's U.S. business, potentially giving the U.S. government a 50% ownership stake.
Other potential investors, including billionaire Frank McCourt and former Treasury Secretary Steven Mnuchin, have publicly expressed interest in purchasing TikTok's U.S. platform. Trump has acknowledged having private discussions with "many people" regarding the company.
Concerns over national security and potential manipulation have driven lawmakers to scrutinize the app's Chinese ownership. TikTok has over 170 million U.S. users.
Trump had previously sought to ban TikTok but later reversed his position. He has since credited the platform with aiding his election.
Microsoft and Walmart previously made an unsuccessful bid for TikTok during Trump's first term. Microsoft CEO Satya Nadella later described the negotiation as "the strangest thing I've ever worked on."