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U.S. president Donald Trump has revealed that Microsoft is in discussions to acquire TikTok, reigniting interest in the future of the popular social media app.

Speaking to reporters, Trump expressed a desire to see a competitive bidding war over TikTok, which boasts around 170 million users in the United States.

TikTok recently faced a brief shutdown ahead of the Jan. 19 enforcement of a law requiring its Chinese parent company, ByteDance, to sell the app or face a nationwide ban due to national security concerns.

Upon taking office on Jan. 20, Trump signed an executive order granting a 75-day delay for the law’s enforcement, buying time for further negotiations regarding TikTok’s ownership.

The president also disclosed last week that he has been engaged in talks with several potential buyers for TikTok and expects to make a decision on the app’s future within 30 days.

Among the possibilities, Trump has previously suggested billionaire Elon Musk, the CEO of Tesla, as a potential buyer. However, Musk has not publicly addressed this suggestion.

READ MORE: President Trump open to Elon Musk buying TikTok amid ban saga

Adding another twist, AI startup Perplexity AI recently made headlines by proposing a merger with TikTok. According to reports, the proposal included an arrangement in which the U.S. government could receive up to 50% ownership in the newly formed company, a deal that could fundamentally reshape TikTok’s future in the American market.

This isn’t the first time Microsoft has been involved in talks to acquire TikTok. During Trump’s first term, the company emerged as a top contender when the administration ordered ByteDance to divest TikTok’s U.S. operations over security concerns.

Negotiations, however, fell apart, and the divestment effort was ultimately abandoned after Trump left office.

Reflecting on the 2020 bid, Microsoft CEO Satya Nadella called it “the strangest thing I’ve ever worked on,” noting the unpredictable nature of the U.S. government’s demands at the time. Nadella added:

“There was a particular set of requirements, and then it just disappeared."

As Microsoft reenters the conversation, its involvement signals renewed interest in TikTok’s future and the potential for significant changes in the platform’s ownership.

Meanwhile, the Biden administration’s emphasis on addressing national security concerns tied to foreign-owned apps like TikTok has fueled urgency around finding a resolution.

Trump’s focus on securing an American buyer for TikTok underscores broader concerns about data privacy and national security, especially as tensions between the U.S. and China continue to shape economic and technological landscapes.

Whether TikTok ultimately lands in the hands of Microsoft, Perplexity AI, or another buyer, the outcome could set a precedent for how the U.S. approaches foreign-owned tech companies in the future.

The latest developments have sparked speculation about the potential bidders and the terms of any acquisition, with TikTok’s immense popularity and influence making it a highly sought-after asset.

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