US President Donald Trump confirmed on Monday that Microsoft is in talks to acquire TikTok, as the app’s future in the United States remains uncertain.
TikTok faces a US law requiring its Chinese parent company, ByteDance, to divest or face a nationwide ban over national security concerns.
When asked if Microsoft was pursuing the acquisition, Trump told reporters, “I would say yes. There’s a lot of interest in TikTok.” Speaking aboard Air Force One, he hinted that a “bidding war” could be a favourable outcome.
The ban, effective from January 19, stems from fears that the Chinese government could misuse the app to spy on Americans or influence public opinion. Trump has, however, delayed enforcement for two and a half months to allow negotiations with Beijing.
Microsoft is considered a leading contender to buy TikTok. According to Angelo Zino of CFRA Research, the tech giant has a strong incentive to expand its presence in digital advertising.
TikTok briefly ceased operations in the US as the ban deadline approached but resumed service after Trump intervened with an executive order to delay the restrictions, giving time to “make a deal.”
Although the Biden administration initially opposed enforcing a ban, TikTok credited Trump for facilitating its return.
This is not Trump’s first attempt to ban TikTok, as he sought similar measures during his earlier White House tenure on national security grounds.