President Donald Trump has revealed that Microsoft is in discussions to acquire China’s TikTok, potentially saving it from a ban in the United States. Microsoft is just one of several offers already on the table for the popular social media platform whose owner, ByteDance, faces a sell-or-ban order.
The Washington Post reports that in a significant development for the future of the embattled social media platform TikTok, President Donald Trump disclosed on Monday night that tech giant Microsoft is actively engaged in negotiations to purchase the app. Speaking to reporters aboard Air Force One, Trump expressed his enthusiasm for the potential deal, stating, “I would say yes. A lot of interest in TikTok.”
The revelation comes amidst ongoing concerns over TikTok’s Chinese ownership and the potential national security risks associated with the app’s data collection practices. In 2020, during his first term, Trump had attempted to force a sale of TikTok, but the effort ultimately failed when courts rejected his push for a sale or outright ban.
Microsoft, with a market value exceeding $3 trillion, possesses the financial resources to acquire TikTok and is likely to face fewer antitrust hurdles compared to other tech giants such as Meta and Google. The company has been aggressively expanding into new business areas, including AI and gaming, making the acquisition of TikTok a strategic move.
Trump, known for his fondness of competitive bidding, remarked, “I like bidding wars because you make the best deal. So if we have a bidding war, that’s a good thing. But we have a lot of interest in it.” The president emphasized his desire for the United States to benefit from any potential deal, stating, “I’d only do it if the United States benefits. And if we can save it, I think that would be a great thing. And I think it would be economically good for America.”
China has previously pledged to block any sale of TikTok and even added the app’s central recommendation algorithm to an export-control list. However, in a recent shift, China seemed to soften its stance, indicating that such decisions should be determined by the companies themselves. Some geopolitical observers suggest that TikTok could become a bargaining chip in the ongoing negotiations between Beijing and Washington over tariffs and trade.
Breitbart News previously reported on another offer for TikTok. Perplexity AI has offered to merge with TikTok, a deal that could provide the United States government 50 percent equity in the resulting company:
Under the revised proposal, ByteDance would contribute TikTok U.S., without its algorithm, in exchange for its existing investors receiving equity in NewCo. Perplexity AI would offer itself up in exchange for its own investors receiving a distribution of the NewCo equity. The merger would be funded by new third-party capital providers, which would be mutually agreed upon by both companies. This capital would be used to provide a one-time dividend payment to ByteDance investors in exchange for simplified governance and to support the growth of the new company.
Perplexity AI has experienced a significant increase in its valuation over the past year, starting 2024 with a valuation of approximately $500 million and ending the year at around $9 billion. This growth can be attributed to the increasing investor interest in the generative AI boom, as well as the potential for AI-assisted search to disrupt the way consumers access information online.
Read more at the Washington Post here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
