Microsoft Reportedly Reenters TikTok Acquisition Talks, Led by Oracle

It’s two years in the future, yet here we are with Microsoft potentially swooping in to buy TikTok again.

For those who missed it, last year the U.S. Congress put pen to paper on a bill aimed at forcing TikTok, which is based in China, to either sell its American operations or shutter them completely. Former President Joe Biden let the bill pass into law without a veto, and TikTok stood its ground by not selling. This led to it briefly going offline last Sunday. But, lo and behold, it was back online a few hours later, accompanied by a pop-up message thanking the newly elected President Trump for granting them a lifeline.

President Trump has given TikTok a 90-day grace period. Still, Google’s Play Store and Apple’s App Store haven’t lifted their ban on the app because of the legal situation. Therefore, TikTok faces a tough decision: close its doors in the U.S. or find a willing buyer soon.

According to NPR, with additional insights from The Verge, rumors are swirling again that Microsoft is eager to purchase TikTok.

This short-video powerhouse has faced criticism worldwide, notorious for an algorithm that can create echo chambers and foster all manner of radicalization. The U.S. labeled it a national security risk, citing potential misuse by TikTok’s parent company, ByteDance, due to its ties with the Chinese Communist Party. Concerns include using the platform for propaganda or to track U.S. citizens. The European Union is also probing into TikTok’s potential role in bolstering extremist parties and dispersing pro-Putin Russian propaganda.

Current discussions reportedly involve the White House exploring a deal where Oracle might take over TikTok’s global operations, with ByteDance maintaining a minority interest. Meanwhile, Microsoft’s exact involvement remains shrouded in mystery as none of the parties involved have provided any comments.

TikTok has become a must-have platform, especially among Gen Alpha and Gen Z audiences. (Image credit: Windows Central)

Comparatively, Meta boasts Facebook and Instagram, Google has conquered YouTube, Amazon dominates with Twitch, and Microsoft has … LinkedIn.

While LinkedIn stands as a successful and significant operation, its utility-driven nature lacks the cultural sway that other social networks wield. Microsoft owning or influencing a platform like TikTok could supercharge its existing consumer products like Windows, Surface, and Xbox. Imagine seamless Xbox and TikTok integration or a built-in TikTok video editor within Windows—ideas that sound familiar when Microsoft bought Skype, although that didn’t pan out as expected.

Realistically, Microsoft’s ownership of TikTok might not come to pass, despite TikTok being one of Microsoft’s major Azure AI clients. TikTok relies heavily on Azure’s machine learning tools, although Oracle handles the majority of the platform’s hosting. If we were to guess, Microsoft’s role might end with its Azure AI involvement.

But imagine the possibilities.