Donald Trump spilled the tea on a possible mega-deal Monday night: Microsoft is back in the chase for TikTok.
The Windows maker is leading the pack of potential buyers for ByteDance’s American TikTok arm.
This isn’t Microsoft’s first rodeo. Back in 2020, during Trump’s first TikTok tantrum, the company was also in the running to snap up the app.
For Microsoft, this is more than a shot at redemption in social media (anyone remember the LinkedIn gamble?).
Read more: TikTok’s back. So what’s next?
Deal done?
Buying TikTok’s US operations would give it access to TikTok’s AI wizardry and add a massive new cloud customer, potentially poaching business from Oracle.
Analysts estimate TikTok’s US operations could be valued between $40 billion and $50 billion, though figures vary widely, depending on the inclusion of its proprietary algorithm.
Microsoft’s got cash — to the tune of $78 billion — to beat other bidders when it comes to making a quick deal.
But don’t cue the victory parade yet. There are hurdles. Big ones.
Will TikTok hand over its source code or license its algorithm? Will Beijing even allow the deal to happen? Negotiating this sale could turn into a geopolitical soap opera.
Read more: Meta who? Here are apps TikTok ‘refugees’ are actually flocking to
What next?
TikTok just got a 75-day extension to divest its US business or face the ban. Trump says a final decision on TikTok’s future could land within 30 days, but details remain vague.
The stakes are massive. If this deal goes through, Microsoft gets a crown jewel in AI and social media.
Michael Ashley Schulman of Running Point Capital tells MONIIFY that TikTok’s real-time data and interactions would supercharge Microsoft’s Azure LLM models and give it an edge against Meta in social media and Alphabet in advertising.
“I believe Microsoft’s share price would react favorably to a TikTok buyout for all the reasons mentioned,” he says.
Microsoft and ByteDance did not respond to requests for comment at the time of publishing.
Trump, never one to shy away from drama, expressed his desire for a “bidding war” over the app, suggesting that competition could drive a better deal.
Also in the mix? Oracle, Perplexity, Elon Musk, billionaire Frank McCourt, Shark Tank’s Kevin O’Leary, and, of course, YouTube star MrBeast. This is possibly going to be messy, political and probably a little absurd.
Read more: Saudi Arabia’s Prince Alwaleed could invest in TikTok if Musk buys it
This story was updated to include comments from Michael Ashley Schulman of Running Point Capital.
Edited by Ankush Chibber. If you have any tips, ideas or feedback, please get in touch: talk-to-us@moniify.com
