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U.S. President Donald Trump confirmed Monday that Microsoft Corporation (NASDAQ: MSFT) is in discussions to acquire TikTok, aiming to keep the popular social media app under American ownership. Trump expressed interest in seeing a competitive bidding process, suggesting it could secure TikTok's U.S. operations within 30 to 90 days.
The President’s remarks followed an earlier announcement of talks with multiple parties over TikTok’s future, although Oracle Corporation (NYSE: ORCL) was reportedly not involved. Trump also indicated openness to Elon Musk, CEO of Tesla, stepping in as a potential buyer.
Last week, Trump signed an executive order granting ByteDance, TikTok’s parent company, additional time to finalize a deal, delaying a potential ban on the app. The President has consistently emphasized the need for TikTok to have at least 50% U.S. ownership to address national security concerns and protect American users' data.
TikTok has become a focal point in U.S.-China relations, with mounting pressure for ByteDance to divest its U.S. operations. Microsoft’s involvement could offer a solution while ensuring the app remains operational for its millions of American users. Trump’s insistence on a swift resolution underscores the administration's push to maintain control over technology and data used within the U.S.
The ongoing negotiations highlight the complexities of managing international tech investments amidst geopolitical tensions. A successful deal could shape the future of TikTok and set a precedent for similar cases.
