Trump pushes for 50% US ownership in TikTok, Microsoft leads talk

As TikTok faces a potential sale, US President Trump pushes for the US to own 50% in a joint venture. With Microsoft leading talks, a bidding war heats up, and new contenders emerge

US President Donald Trump announced on Monday that Microsoft is in talks to acquire the popular video-sharing app TikTok and expressed the desire for a bidding war over the platform. Trump told journalists that multiple contenders are vying for TikTok, adding, “I would like the United States to have a 50 per cent ownership position in a joint venture,” reported Reuters.

 

Trump’s comments come after he previously expressed a preference for high-profile figures like Tesla CEO Elon Musk or Oracle Corp Chairman Larry Ellison to take over TikTok, due to concerns about its Chinese ownership.

 

Trump’s remarks also follow his revelation that many influential people have shown interest in purchasing the app. “Numerous people are talking to me. Very substantial people. We have a lot of interest in it, and the United States will be a big beneficiary… I’d only do it if the United States benefits,” he said on Saturday.

 

 

In a new twist, another player has entered the bidding race: Perplexity AI. The company has proposed a merger with TikTok’s US operations and a joint venture with the US government. Under this plan, ByteDance, TikTok’s Chinese parent company, would retain a stake in the platform, but it would require a US-based board to control all decisions related to TikTok’s operations in the country.

 

This move follows the US Supreme Court’s decision to uphold a law banning TikTok citing national security and data privacy concerns stemming from its Chinese ownership.

 

Despite these concerns, Trump, who has earlier praised TikTok for helping him engage with young voters during his campaign, temporarily blocked the ban. He signed an executive order giving TikTok 75 days to find a solution — specifically, a sale that would eliminate Chinese ownership.

 

Amid these legal and political challenges, TikTok’s popularity in the US continues to soar. According to a recent study by the Pew Research Center, 33 per cent of US adults now use TikTok, a significant increase from just 21 per cent in 2021. The app is particularly popular among younger generations, with 59 per cent of adults under 30 using it regularly. Entertainment remains the primary reason for using TikTok, with 95 per cent of users saying they turn to the platform for fun. However, TikTok’s growing influence as a news source is also notable, with 52 per cent of US adult users regularly accessing news on the app—more than double the number in 2020.

 

Despite its increasing influence, public opinion on TikTok’s future in the US remains divided. A survey conducted in the summer of 2024 revealed that support for a TikTok ban has decreased to 32 per cent, down from 50 per cent in March 2023. While many Americans still express concerns over TikTok’s security risks, half of them doubt that a ban will happen.

 

As TikTok changes how Americans consume entertainment and news, the debate over its impact on democracy continues. A third of TikTok users believe the app is beneficial to American democracy, while 17 per cent view it as harmful. However, the majority (49 per cent) believe TikTok has little to no impact on democratic processes.

 

[With agency inputs]