US President Donald Trump announced on Monday that Microsoft is in negotiations to purchase TikTok, as the app’s status in the country remains uncertain.
TikTok is currently grappling with a US law that mandates the company to separate from its Chinese parent, ByteDance, or face a ban in the United States.
When asked if Microsoft was indeed in talks to acquire TikTok, Trump responded affirmatively, stating, “I would say yes.”
He emphasized the significant interest surrounding TikTok, mentioning, “There’s a lot of interest in TikTok, there’s great interest in TikTok,” while aboard Air Force One.
Trump also suggested that a “bidding war” could be a positive outcome.
A law prohibiting the video-sharing platform came into effect on January 19 due to fears that the Chinese government might use it for espionage or to sway US public opinion.
However, Trump has paused the law’s enforcement for two and a half months in hopes of reaching an agreement with Beijing.
According to Angelo Zino from CFRA Research, Microsoft is a strong contender to acquire TikTok, as the company aims to deepen its presence in the digital advertising market.
As the deadline for the law loomed, TikTok temporarily ceased operations in the United States.
Trump then vowed to sign an executive order upon taking office to postpone the ban, allowing time to “make a deal.”
Following this, TikTok resumed its services in the country, attributing the turnaround to Trump’s intervention, even though the outgoing Biden administration had previously indicated it would not enforce any ban.
During his first term, Trump had sought to prohibit TikTok in the US due to national security concerns.
