Microsoft in Talks for TikTok Acquisition: A Renewed Bidding Drama

U.S. President Donald Trump has disclosed Microsoft's interest in acquiring TikTok. The app faces divestiture from its Chinese owner ByteDance over national security concerns. Talks are ongoing with other potential buyers, including AI startup Perplexity AI. This is Microsoft's second involvement in TikTok acquisition talks since 2020.

In an unfolding international tech drama, U.S. President Donald Trump revealed on Monday that Microsoft is actively pursuing a deal to acquire TikTok. Trump suggests he favors a competitive bidding process for the popular social media platform.

Despite the president's remarks, Microsoft has refrained from commenting, and TikTok and its parent company ByteDance have not offered statements in response to Reuters' requests. TikTok, which boasts approximately 170 million American users, was temporarily shut down prior to a legal mandate pressuring ByteDance to sell on the grounds of national security, with a compliance deadline set for January 19.

Since his term began on January 20, Trump issued an executive order delaying this enforcement by 75 days. He acknowledged ongoing negotiations with multiple potential buyers, including the suggestion of Tesla CEO Elon Musk—who has yet to publicly respond. An intriguing proposal from AI startup Perplexity AI would involve a merger, with the U.S. government obtaining up to a 50% stake in the new entity, as per Reuters' unnamed sources.

(With inputs from agencies.)