Donald Trump has claimed Microsoft is in talks to buy TikTok. Industry analysts estimate TikTok’s global operations could be valued at over $100 billion, making it one of the largest potential tech acquisitions in history.
The President of the United States is keen to see a “bidding war” for the social media app, after both he and his predecessor Joe Biden spent years trying to force the platform’s Chinese parent company ByteDance to sell off its operations in the US over security concerns. These concerns have been echoed by cybersecurity experts worldwide, who point to data privacy risks.
“I would say yes,” Trump responded when asked by reporters whether Microsoft is among those preparing a bid. This statement caused immediate ripples through the tech industry, with Microsoft’s stock showing increased trading volume.
A spokesperson for Microsoft told the BBC that they had “nothing to share at this time”. The tech giant’s previous acquisitions include LinkedIn for $26.2 billion and Activision Blizzard for $69 billion, demonstrating its capacity for major purchases.
Last week, Trump delayed a ban from the Biden Administration which saw TikTok briefly taken offline. The temporary shutdown affected millions of US users and thousands of content creators who rely on the platform for income.
The app has been given a 75-day reprieve, but Trump is pushing ByteDance towards a sale. This timeline aligns with similar technology company divestitures in recent years, though experts note the complexity of this particular case.
“We’ll see what happens. We’re going to have a lot of people bidding on it,” Trump addressed Republican politicians on Monday (27.01.25). The potential sale has attracted interest from various tech industry leaders.
Trump has said he would like to give the Chinese owners a “permit” to continue operating in the US, but only if it is 50 per cent owned by America. This ownership structure would be unprecedented in major tech acquisitions.
This has led to much speculation about which US entity could buy TikTok. Market analysts have identified several potential buyers among America’s leading tech companies.
A recent report from NPR suggested Trump was talking to cloud computing and database giant Oracle about a takeover, but he has since denied this claim. Oracle had previously shown interest in TikTok during similar negotiations in 2020.
“No, not with Oracle. Numerous people are talking to me, very substantial people, about buying it and I will make that decision probably over the next 30 days. Congress has given 90 days,” he said speaking to reporters over the weekend.
TikTok – which has refused to sell up and accused the US government of impinging on citizens’ right to free speech with the ban – is back up and running for US users for the time being with its future still in doubt. The platform’s user base continues to grow despite the uncertainty.
However, ByteDance is determined to come to a “long-term solution” with Trump. The company’s global expansion has faced increasing scrutiny from regulators worldwide.
“We thank President Trump for providing the necessary clarity and assurance to our service providers that they will face no penalties providing TikTok to over 170 million Americans and allowing over 7 million small businesses to thrive,” the company said.
“We will work with President Trump on a long-term solution that keeps TikTok in the United States.” The outcome of these negotiations could set precedents for future international technology company operations in the US.
The situation highlights growing tensions between US technology policy and Chinese-owned social media platforms. Similar concerns have led to restrictions or bans in other countries, including India and several European nations, affecting billions of users globally.
