US President Donald Trump announced on Monday that Microsoft is among the US companies interested in acquiring TikTok, aiming to prevent a potential ban of the popular app in April. He also mentioned that other companies are considering similar moves, though he did not provide specific names. Trump expressed a preference for a competitive bidding process, saying, “I like bidding wars because you make your best deals.”
In a related development, Perplexity AI has submitted a revised merger proposal to ByteDance, TikTok’s Chinese parent company. The proposal suggests creating a new entity that would merge Perplexity AI with TikTok’s US operations. This new holding company, tentatively named “NewCo,” would exclude TikTok’s core recommendation algorithm, which ByteDance would retain. Following an initial public offering valued at a minimum of $300 billion, the US government could potentially own up to 50% of the new entity.
These developments come after President Trump extended the deadline for TikTok to find new ownership by 75 days, moving it from January 19 to April 4. The administration has expressed concerns over national security, citing the app’s Chinese ownership and potential data privacy issues. Various investors, including former Treasury Secretary Steven Mnuchin and billionaire Frank McCourt, have also shown interest in acquiring TikTok’s US platform.
Microsoft had previously attempted to acquire TikTok during Trump’s first term, a bid that ultimately did not succeed. The current interest from multiple parties underscores the high stakes and significant value associated with TikTok’s US operations.
