The President of the United States, Donald Trump, said last Monday, January 27, that Microsoft is on the list of US companies that are considering taking control of TikTok to help this app avoid being banned from further operation in the country.
The mentioned ban may come into force as early as April if the specified digital platform, which is part of the ownership structure of the Chinese company ByteDance, does not conclude the deal in the United States. In this case, it implies the transfer of control of a significant part of TikTok US to a brand that has yet to be selected by the mentioned firm from an Asian country.
On Monday, Donald Trump, during a conversation with media representatives, answered in the affirmative the question of whether Microsoft is one of the companies interested in helping to bring about a new ownership of the mentioned app. The decision of the Congress provides for the need to conclude an appropriate deal. Ignoring this requirement will mean that TikTok will be banned from operating in the United States.
Currently, the mentioned app is one of the most popular digital platforms among US citizens. TikTok has about 170 million monthly active users in the United States. For many, the digital platform is a source of income. In this case, TikTok is meant to be used as an e-commerce platform by sellers.
Donald Trump said that, in addition to Microsoft, other companies are also interested in purchasing the mentioned app. At the same time, there is still no complete list of these firms.
Speaking to reporters aboard Air Force One, returning from Miami to Washington, where Republican members of the House of Representatives were holding a conference, Donald Trump said that he liked bidding wars because in this case, the best deals are concluded.
Microsoft did not comment on information about its interest in purchasing TikTok. Representatives of the digital platform owned by ByteDance also preferred the tactic of silence in the context of a public discussion of the relevant issue.
It is worth noting that last week, as part of one of his first acts in office, Donald Trump extended the deadline for TikTok to find new ownership satisfying the United States government for 75 days, from January 19th to April 4th.
The US president stated that he is looking for the ultimate purchaser to give the United States a 50% stake in the digital platform owned by ByteDance. It is worth noting that all the details of the relevant plan are still unknown. In particular, there is no information about whether Donald Trump is proposing to establish control over TikTok by the US government or another entity.
Perplexity AI, a startup operating in the artificial intelligence industry, also presented a new proposal to ByteDance. In this case, it is implied that the United States government will own up to 50% of the new entity, which merges the mentioned startup and TikTok’s US business. The relevant information was published by the media with reference to insiders who were aware of the details of the specified potential deal.
Moreover, some investors, including billionaire Frank McCourt and Donald Trump’s former Treasury Secretary Steven Mnuchin, have publicly stated their desire to purchase TikTok’s US platform. Mr. Trump also stated that he had privately talked about the mentioned digital platform with many people.
After a bipartisan law was signed by former United States President Joe Biden last April, ByteDance stated that it did not have intention of selling TikTok. For several months, the company fought the statute in court. China also rebuked the United States in the divestment push, though more recently it appears to be softening its stance.
During a conversation with media representatives last week, Bill Ford, the chairman of the global investing firm General Atlantic and a ByteDance board member, said that the company is prepared to engage with the administration of Donald Trump and Chinese officials to find a solution that will keep TikTok accessible. Also in this case, there was a floated idea that there might be some other solution besides a full divesture by ByteDance.
In the United States, lawmakers and officials from both parties have repeatedly voiced concerns about national security amid the fact that TikTok is owned by a Chinese company. Also in this context, concerns were recorded about the risk of various manipulations on the mentioned digital platform.
It is worth noting that initially, Donald Trump was a proponent of banning TikTok. Last year, he changed his position on the relevant issue. This transformation of opinion has an unambiguous reason. TikTok actually helped Donald Trump win more young votes during the presidential election.
Moreover, it’s worth mentioning that Microsoft and Walmart tried to acquire TikTok during Mr. Trump’s first presidential term. These attempts were unsuccessful. At that time, Donald Trump tried to ban TikTok. Microsoft chief executive officer Satya Nadella described the mentioned experience as the strangest thing he has ever worked on.
