President Trump confirms Microsoft’s talks to acquire TikTok, urging a bidding war. AI startup Perplexity also makes a bid. Decision expected in 30 days.
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.
Microsoft declined to comment. TikTok and ByteDance did not immediately respond to requests for comment outside regular business hours.
TikTok, which has about 170 million American users, was briefly taken offline just before a law requiring its Chinese owner ByteDance to sell it on national security grounds or face a ban took effect on Jan. 19.
After taking office on Jan. 20, Trump signed an executive order seeking to delay the enforcement of the law by 75 days.
Trump said last week that he was in talks with multiple people over buying TikTok and would likely have a decision on the popular app’s future in 30 days.
The U.S. president has previously said he was open to billionaire Elon Musk buying the social media app if the Tesla CEO wanted to do so. Musk, however, has not publicly commented on Trump’s offer.
More recently, AI startup Perplexity AI proposed to merge with TikTok on Sunday, with the U.S. government getting up to half of the new company in the future, a source told Reuters on Sunday.
The reported talks mark Microsoft’s second time in the frame to acquire TikTok.
During his first term, Trump ordered TikTok to separate its U.S. version from ByteDance, citing national security concerns.
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Microsoft emerged as a top bidder in 2020, but the talks soon collapsed, and Trump’s divestment push ended a few months later when he left office.
Microsoft CEO Satya Nadella called that deal the “strangest thing I’ve ever worked on.”
In 2021, he said the U.S. government had a “particular set of requirements, and then it just disappeared.”
