The video app TikTok has been at the center of political and business controversy in the United States since 2020, when then-President Donald Trump imposed restrictions on its operation over national security concerns. As a result, the possibility opened up for a US company to acquire TikTok’s subsidiary in the country to avoid a permanent ban. However, although various purchase options have been explored, the platform continues to operate without a definitive resolution.
The TikTok ban and the temporary shutdown
On January 19, just before Donald Trump’s return to the presidency, a law banning TikTok in the United States came into force due to fears that the Chinese government could use the platform to spy on US citizens or influence public opinion. This measure forced ByteDance, TikTok’s parent company, to suspend its operation in the country and consider the possibility of a sale in order to continue operating without restrictions.
Initially, the application was suspended for a few hours, until Trump himself temporarily vetoed the measure, allowing its operation while solutions were being evaluated. In this context, talks with US companies interested in buying it were reactivated.
Possible buyers and ongoing negotiations
Microsoft, one of the world’s largest technology companies, had already tried to acquire TikTok in 2020, when Trump ordered the separation of its US operations from its Chinese ones. However, the negotiation fell through after Trump left the White House.
Currently, Trump has confirmed that Microsoft is once again in talks to buy TikTok in the United States. However, the company has not made any official statements, which suggests that negotiations are still ongoing without a definitive outcome.
Other companies have also shown interest in acquiring TikTok. The artificial intelligence startup Perplexity AI proposed merging with the app, offering the US government a 50% stake in the new company. Billionaire Frank McCourt, former owner of the Los Angeles Dodgers, also made a formal offer. There has even been speculation about the involvement of Elon Musk and Oracle in the acquisition process, although there has been no official confirmation.
Business and technological implications
The case of TikTok reflects how geopolitical tensions can directly affect technology companies with global operations. The possible sale of TikTok raises questions about the regulation of the digital market, data security and government control over social platforms.
For Microsoft, acquiring TikTok would represent a strategic expansion into the social media sector, an area in which it does not have as strong a presence as other big tech companies. However, it also poses challenges in terms of regulation and content management.
On the other hand, the uncertainty surrounding the deal could affect investor and advertiser confidence in TikTok, which could influence its valuation and long-term business model.
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Sources:
Donald Trump claims Microsoft is in talks to buy TikTok
TikTok suffers 13-hour outage in the US, but restores service after Trump intervention
