Trump Says Microsoft in Talks to Acquire TikTok as Ban Looms

What Happened?

President Donald Trump announced Microsoft has entered into talks to acquire the popular video-sharing media platform TikTok amid a looming government ban.

On Monday, Trump reportedly told reporters that there has been ‘a lot of interest in TikTok’ and that he would like to see a bidding war.

Microsoft adds to that growing list of firms in the mix to acquire the platform.

If TikTok's parent company ByteDance does not aim to sell to a U.S. buyer, it could face another ban in less than three months.

TikTok recently had its U.S. services restored after the app temporarily went dark for users last week, as required by the Protecting Americans from Foreign Adversary Controlled Applications Act.

The Supreme Court unanimously upheld the law to ban the app in a 27-page unsigned opinion.

Trump stated he would extend the period before the law’s prohibitions took effect through executive order ‘so that we can make a deal to protect our national security.’

TikTok called the action ‘a strong stand for the First Amendment and against arbitrary censorship’ and will work with the president on a long-term solution that keeps TikTok in the U.S.

Trump has reportedly suggested that an American buyer should purchase half of TikTok in a 50-50 joint venture partnership.

Why it Matters

The app has remained unavailable to download primarily from the app stores of online services such as Apple and Google.

Some of TikTok's 170 million U.S.-based users are reportedly selling phones online for thousands of dollars with the app pre-installed.

Listings on eBay have ranged as high as $50,000 for a TikTok-loaded device.

Analysts have reportedly estimated $40 billion to $50 billion as the likely asking price if the app were to be sold solely to a U.S. investor.

Experts have previously questioned if the law would allow a 50-50 joint venture with ByteDance amid a 20% cap for ‘foreign adversary’ owners.

As a result, it is unclear if Trump's solution would satisfy Congress members in the end without a sole American owner.

Microsoft reportedly had emerged as a top bidder in 2020, but the talks later collapsed.

How it Affects You

Over one million content creators still await a finalized measure on the TikTok U.S. outcome.

The Chinese government has reportedly expressed a shift in openness to a deal being made amid private companies independently deciding whether to sell their entities.

Several Republican state attorneys general told Fox News Monday that while confident in Trump, the app should still be banned if it poses a threat to national security.

TikTok's outcome may have major effects on not only content creators who monetize for entertainment but also retail business owners who will be forced to adapt.

The impact could change the views on the internet overall, becoming more closed at any moment if deemed a threat by the government.