President Donald Trump announced that Microsoft is among the U.S. companies interested in acquiring TikTok to prevent a potential ban that could come into effect in April. Trump confirmed that Microsoft is one of the companies looking to facilitate a change in TikTok's ownership, a requirement mandated by Congress to ensure the app's continued operation in the U.S. He mentioned that there are other companies also considering purchasing TikTok, but did not disclose their identities.
Trump expressed his preference for bidding wars, stating that they lead to favorable deals. Microsoft chose not to comment on the matter, while representatives for TikTok did not immediately respond to requests for comment.
Last week, Trump extended the deadline for TikTok to find new ownership that satisfies the government by 75 days, moving it to April 4 from January 19. The president has indicated that he wants the ultimate buyer to grant the U.S. a 50% stake in the company, which is currently owned by China-based ByteDance. However, the specifics of this arrangement remain unclear.
Various investors, including billionaire Frank McCourt and former Treasury Secretary Steven Mnuchin, have expressed interest in acquiring TikTok's U.S. platform. Trump mentioned that he has held private discussions with numerous individuals regarding the company.
Concerns about national security risks associated with Chinese ownership and potential manipulation on the popular platform, which boasts over 170 million U.S. users, have been raised by lawmakers and officials from both parties. Trump, who initially supported a TikTok ban, later reversed his stance, attributing the platform to aiding in securing more young voters during the recent presidential election.
Microsoft, in collaboration with Walmart, previously made an unsuccessful bid for TikTok during Trump's first term after he attempted to ban the app. Microsoft CEO Satya Nadella later described the experience as 'the strangest thing I've ever worked on.'
