U.S. President Donald Trump confirmed on Monday that Microsoft is engaged in discussions to acquire TikTok, as the popular video-sharing app faces an uncertain future in the United States. TikTok is under pressure due to a U.S. law requiring its Chinese parent company, ByteDance, to divest its ownership or face a ban in the country.
When asked about Microsoft’s potential acquisition of TikTok, Trump responded, “I would say yes,” while speaking to reporters aboard Air Force One. He added, “There’s a lot of interest in TikTok, there’s great interest in TikTok,” and suggested that a “bidding war” for the app would be a positive development.
The controversy stems from a U.S. law that took effect on January 19, citing concerns that the Chinese government could use TikTok to spy on Americans or manipulate public opinion. However, Trump has delayed the law’s implementation for two and a half months to seek a resolution with Beijing.
Analysts, including Angelo Zino of CFRA Research, have identified Microsoft as a likely buyer for TikTok, noting the tech giant’s interest in expanding its presence in the digital advertising space. “Microsoft has had a desire to get more entrenched into the digital ad space,” Zino said.
As the deadline for the law approached, TikTok temporarily shut down its U.S. operations. Trump later pledged to issue an executive order to delay the ban, allowing time for negotiations. TikTok subsequently resumed services in the U.S., crediting Trump for the reversal. This decision came despite the outgoing Biden administration’s earlier statement that it would not enforce any ban.
This is not the first time TikTok has faced scrutiny in the U.S. During his first term, Trump attempted to ban the app over national security concerns, though the effort was ultimately unsuccessful. The ongoing negotiations with Microsoft could provide a pathway for TikTok to continue operating in the U.S. market.