During Monday’s discussion, Microsoft considers purchasing TikTok social media from President Donald Trump. Of its 170 million U.S. users, TikTok continues to face questions about Chinese ownership, which has led United States security authorities to contemplate restricting platform functions or ordering a sale.
TikTok faces pressure to sell amid security concerns
U.S. government organizations compel ByteDance to transfer all control of their TikTok application under constitutional agreements. Since ByteDance introduced TikTok, U.S. security departments have performed ongoing data management assessments on ByteDanc. January 19 saw brief disruptions to TikTok’s service because new governmental regulations unexpectedly came into play despite causing only short-term problems for platform users and performers. ByteDance must sell its American operations or face full market exclusion from the United States.
This isn’t the first time Microsoft has pursued TikTok. Similar talks addressed data privacy concerns during Donald Trump’s first presidential term. Although Microsoft emerged as a leading bidder in 2020, negotiations ultimately fell through. Reflecting on the past effort, Microsoft CEO Satya Nadella described the experience as highly unusual, citing the government’s strict requirements for the deal, which were later abandoned.
Trump weighing TikTok’s future
President Trump made ByteDance wait for its divestment terms by 75 days after returning to office on January 20, 2021. The president established 30 days as his deadline for deciding TikTok’s future status.
During discussions, President Trump interacted with various entities interested in taking control of TikTok. Trump expressed his willingness to collaborate with Elon Musk on the TikTok situation, yet Musk has not publicly engaged. AI startup Perplexity AI stepped forward with a merger bid on Sunday following multiple organizations that showed interest in acquiring TikTok. After both sides effectively completed their arrangements, the U.S. government would gain a 50% stake in the new combined company.
A competitive bidding process could be ahead
President Trump supports a competitive bidding system as the next step for TikTok’s U.S. operations. While Microsoft remains a key contender, the possibility of other buyers entering the negotiations leaves the app’s future uncertain. ByteDance and TikTok’s leadership have not issued a formal statement about the ongoing discussions.
The coming weeks are expected to provide more clarity as the divestment deadline approaches, with President Trump and interested parties seeking to resolve the matter before the 75-day postponement period expires.