Microsoft is reportedly in discussions to acquire TikTok amid security concerns. U.S. President Donald Trump confirmed on Monday that Microsoft is exploring a potential acquisition of TikTok, Reuters reported.
This follows growing national security concerns surrounding the app’s Chinese ownership. The discussions come as the U.S. government pushes TikTok to divest its American operations or face a ban. Trump told reporters he hopes to see competition in the bidding process for the app, signaling his interest in how the sale unfolds, Reuters reported.
Microsoft declined to comment, while TikTok and its parent company ByteDance did not respond to Reuters’ inquiries outside regular business hours.
“U.S. President Donald Trump told reporters on Monday that Microsoft is in talks to acquire TikTok and that he would like to see a bidding war over the app,” Reuters reported.
This development comes shortly after AI startup Perplexity AI proposed merging with TikTok U.S. in a deal that included the possibility of the U.S. government holding up to half of the new company in the future.
TikTok, which has around 170 million users in the U.S., briefly went offline before the enforcement of a law that required ByteDance to sell the app on national security grounds. The law was set to take effect on January 19 but was delayed by an executive order signed by Trump shortly after he took office, extending the timeline by 75 days.
Last week, Trump stated that he was discussing TikTok’s future with various parties and expected to decide within 30 days. He also previously floated the idea of Elon Musk acquiring the app, though Musk has not publicly commented.
This isn’t Microsoft’s first attempt to acquire TikTok. In 2020, during Trump’s first term, the tech giant was a top contender to buy TikTok’s U.S. operations after a government order demanded the app separate from ByteDance due to security concerns. However, those talks eventually fell apart, and the push to divest TikTok fizzled after Trump left office.
Reflecting on the 2020 negotiations, Microsoft CEO Satya Nadella described it as “the strangest thing I’ve ever worked on,” noting that the government’s conditions were abruptly dropped without resolution.
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