Trump claims Microsoft is negotiating to purchase TikTok.

Microsoft Reportedly in Talks to Acquire TikTok Amid Renewed National Security Concerns

Washington, D.C. – January 27, 2025 – U.S. President Donald Trump revealed on Monday that Microsoft is in discussions to acquire TikTok, sparking renewed speculation about the fate of the popular short-form video app. Trump emphasized his preference for a competitive bidding process, though Microsoft has not officially commented on the matter. TikTok and its parent company, ByteDance, have also remained silent, declining to respond to Reuters’ inquiries outside of regular business hours.

With approximately 170 million users in the United States, TikTok has been at the center of national security debates. Just before a new law requiring ByteDance to divest its ownership of the app took effect on January 19, the platform was briefly taken offline. However, following his inauguration on January 20, President Trump issued an executive order postponing enforcement of the law by 75 days, giving TikTok additional time to negotiate a sale.

Last week, Trump disclosed that he was in discussions with multiple parties about the potential acquisition of TikTok and anticipated reaching a decision within 30 days. He also signaled his willingness to support billionaire Elon Musk in purchasing the platform should Musk express interest, though Musk has not publicly addressed the possibility.

In a surprising development, AI startup Perplexity AI has proposed a merger with TikTok, reportedly suggesting that the U.S. government could receive up to half of the new entity, according to an anonymous source who spoke to Reuters on Sunday. The potential deal adds another layer of complexity to the ongoing negotiations surrounding TikTok’s ownership.

This marks the second instance of Microsoft being considered as a potential buyer for TikTok. During Trump’s first term, he mandated that TikTok separate its U.S. operations from ByteDance due to national security concerns. At that time, Microsoft emerged as a leading contender to acquire the app, but negotiations ultimately fell apart. Microsoft CEO Satya Nadella later described the experience as "the strangest thing I've ever worked on." Now, as discussions resurface, it remains to be seen whether Microsoft will take another shot at acquiring the social media giant.

As the 75-day deadline looms, TikTok’s future in the U.S. hangs in the balance, with multiple parties, including major tech firms and government officials, closely monitoring the situation. Whether Microsoft, Elon Musk, or another bidder will ultimately secure TikTok remains an open question, but one thing is certain—this acquisition battle is far from over.