Trump Confirms Microsoft Among TikTok Suitors as April Deadline Looms
President Donald Trump has publicly confirmed that Microsoft is one of several U.S. companies in discussions to acquire TikTok’s American operations. The statement, made aboard Air Force One on February 10, 2025, aims to address a looming deadline set by Congress that could effectively ban the popular social media platform in the United States.
“I would say yes,” Trump replied when asked if Microsoft was interested, adding, “I like bidding wars because you make your best deals.” He noted that other unnamed companies were also pursuing a purchase but refrained from providing specifics. Microsoft declined to comment on the matter, and TikTok’s representatives did not immediately respond to requests for comment.
Extended Deadline and the 50% Stake Demand
The current timeline stems from the bipartisan Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), signed by President Joe Biden in April 2024. The law requires TikTok’s Chinese parent company, ByteDance, to divest its U.S. assets or face a shutdown. In one of his first executive actions, President Trump granted a 75-day extension, moving the deadline to April 4, 2025, from the original January 19 date.
Trump has repeatedly stated that any deal must grant the U.S. government a 50% ownership stake in the restructured entity. The precise mechanics—whether this means direct government ownership or a stake held by a U.S.-based entity—remain ambiguous and are a key point of negotiation. This demand introduces a complex political and structural layer to what is already a high-stakes corporate sale.
Other Potential Bidders Emerge
Microsoft is not alone. Several other consortia and investors have publicly or privately signaled interest:
- Perplexity AI: The artificial intelligence startup has proposed a novel structure where a new entity, merging Perplexity with TikTok’s U.S. business, would be up to 50% owned by the U.S. government, according to a person familiar with the matter.
- Frank McCourt: The billionaire former owner of the Los Angeles Dodgers has been vocal about leading an acquisition effort.
- Steven Mnuchin: Trump’s former Treasury Secretary has also been identified as part of an investor group exploring a bid.
Trump himself confirmed he has spoken with “many people” about a potential transaction, suggesting a competitive, multi-party process is forming.
National Security and Political Context
The push for a TikTok divestment is rooted in sustained national security concerns raised by lawmakers and officials from both parties over the past half-decade. Central to these concerns is the potential for the Chinese government to access U.S. user data or manipulate content on the platform, which boasts over 170 million American users.
Bipartisan Law and Prolonged Legal Battle
After years of scrutiny and an attempted ban during Trump’s first term, Congress enacted PAFACA with overwhelming bipartisan support. ByteDance responded by fighting the statute in federal court for months, arguing it violates the First Amendment and is an unlawful taking. China’s government initially condemned the divestment demand as coercive, though recent diplomatic signals suggest a potential softening of its rigid opposition to a sale.
Bill Ford, chairman of global investment firm General Atlantic and a ByteDance board member, indicated last week that the company is “prepared to engage” with the Trump administration and Chinese officials to find a solution. He notably floated the possibility of a resolution that might not require a full divestiture by ByteDance, hinting at alternative operational or data security agreements.
Trump’s Dramatic Shift in Stance
President Trump’s current advocacy for a structured sale marks a significant reversal from his first term. In 2020, he sought to ban TikTok outright via executive order, citing national security threats. That effort was blocked by the courts. Now, he credits the platform with helping him connect with and win over younger voters in the 2024 presidential election, stating, “It helped me a lot with youth.” This political calculation underscores the intertwining of policy, personal experience, and electoral strategy in the ongoing TikTok saga.
Microsoft’s History and the Path Forward
Microsoft’s involvement is not unprecedented. During the 2020 standoff, Microsoft, alongside Walmart, engaged in advanced talks to acquire TikTok’s U.S. operations. That deal ultimately collapsed amid legal challenges and shifting political winds. Microsoft CEO Satya Nadella later described the experience as the “strangest thing I’ve ever worked on,” highlighting the intense geopolitical and regulatory complexities involved.
As the April 4 deadline approaches, the process faces immense pressure. Key unresolved questions include:
- Will ByteDance agree to sell, or will it continue to resist, potentially testing the government’s resolve to enforce the ban?
- Can a deal structure satisfying the U.S. government’s 50% ownership demand, Chinese regulatory approvals, and commercial viability be crafted?
- How will the “bidding war” Trump envisions materialize, and what will define the
