President Donald Trump has revealed that Microsoft is in discussions to acquire TikTok. He stated that he would prefer a “bidding war” to begin over the app, showing that he wants multiple companies to compete for ownership of TikTok to potentially drive up its sale price and ensure U.S. control over the platform’s future. These developments come in response to a law that requires Tiktok Chinese Parent company ByteDance to sell Tiktok or face a ban, based on national security grounds.

Microsoft has previously shown interest in TikTok but has declined to comment on the matter. ByteDance and Tiktok have yet to respond to requests for comments. The app was temporarily taken offline before the enforcement of the law on January 19th, however, Trump signed an executive order delaying the law by 75 days.

In 2020, during the first Trump administration, President Trump ordered TikTok to separate from ByteDance due to national security concerns. Microsoft had emerged as a front-runner in negotiations but the discussion eventually collapsed. Microsoft CEO Satya Nadella later described the deals as the “strangest thing I’ve ever worked on,” since the government’s demands were unclear and then suddenly disappeared.

In addition to Microsoft, artificial intelligence startup, Perplexity AI, has reportedly proposed a merger with TikTok, which would grant the U.S. government a significant stake in the company. This potential move has further complicated the ongoing negotiation as it raises questions about the future of TikTok ownership and government control over the app.

As of now, TikTok divestment looms, and the situation remains fluid as major tech companies are vying for control over the platform. With national security concerns at the forefront, the outcome of these negations will impact the future of TikTok operations in the U.S. and set a precedent for future foreign-owned technology.