Trump says Microsoft in talks to acquire TikTok
Deal News | Jan 28, 2025 | Zawya
U.S. President Donald Trump has announced that Microsoft is once again in discussions to acquire social media app TikTok, after a similar push to separate its U.S. operations from Chinese parent company ByteDance under national security concerns during Trump's first term. This development comes after the brief threat of TikTok being banned unless divested due to Chinese ownership. Trump has expressed the desire for a competitive bidding process for TikTok and mentioned that he is currently negotiating with various entities, including billionaire Elon Musk, though Musk has not commented. Additionally, an AI startup, Perplexity AI, has proposed a merger with TikTok, potentially allowing the U.S. government to receive up to half ownership. Microsoft's CEO Satya Nadella, reflecting on the 2020 attempt to acquire TikTok, called it one of the strangest deals. The current discussions suggest a coordinated effort to possibly bring TikTok's ownership under U.S. control, aligning with Trump's executive orders aimed at national security.
Sectors
- Technology
- Social Media
- Government and Regulation
Geography
- United States – The primary geography involved due to the U.S. government's actions against TikTok.
- China – Relevant as TikTok's parent company ByteDance is based in China.
Industry
- Technology – Relates to Microsoft's potential acquisition of TikTok, a social media application.
- Social Media – TikTok is primarily a social media app with a substantial user base in the U.S.
- Government and Regulation – Involves U.S. government policies impacting TikTok due to national security concerns.
Financials
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| TikTok | Target company | Company | Social media platform with a significant user base targeted for acquisition. |
| ByteDance | Selling Company | Company | Chinese parent company of TikTok. |
| Microsoft | Bidding Company | Company | Potential acquirer of TikTok as mentioned by President Trump. |
| Donald Trump | U.S. President | People | Driving the acquisition talks through governmental influence. |
| Elon Musk | Potential Buyer | People | Listed by Trump as a potential TikTok buyer but has not commented. |
| Perplexity AI | Bidding Company | Company | AI startup proposing a merger with TikTok. |