Microsoft in talks to buy TikTok: Donald Trump

Microsoft is in talks to acquire TikTok, US President Donald Trump says, a move that could save it from a ban in the States.

US President Donald Trump says Microsoft is in talks to acquire TikTok, while the app’s future in the country faces uncertainty.

TikTok is facing down a US law that ordered the company to divest from its Chinese owner ByteDance or be banned in the United States.

Asked late on Monday (local time) if Microsoft was in discussion for acquiring TikTok, Mr Trump told reporters: “I would say yes.

“There’s a lot of interest in TikTok, there’s great interest in TikTok,” he said, aboard Air Force One.

He noted that a “bidding war” would also be a good development.

Microsoft CEO Satya Nadella. Picture: Mat Hayward/Getty Images for We Day

A law banning the video-sharing platform took effect January 19 over concerns that the Chinese government could exploit it to spy on Americans or covertly influence US public opinion.

But Mr Trump has suspended its implementation for two and a half months, seeking a solution with Beijing.

The app became wildly popular in the US and the Western world in 2018, racking up about 3 billion downloads by 2022.

Creators like Charli D’Amelio and Khaby Lame have become household names.

Charli D'Amelio has a huge audience on TikTok. Picture: Leon Bennett/Getty Images

Microsoft is among likely buyers who would have a reason to invest in TikTok, said Angelo Zino at CFRA Research.

He believes Microsoft “has had a desire to get more entrenched into the digital ad space.” TikTok temporarily shut down in the United States as the deadline for the law approached.

Trump then promised to issue an executive order as soon as he took office to delay the ban to allow time to “make a deal.” TikTok restored service subsequently in the country, crediting Trump for making the reversal possible -- though the outgoing Biden administration had earlier said that it would not enforce any ban.

In his first White House stint, Trump had attempted to ban TikTok in the United States on national security concerns.