President Donald Trump confirmed Monday that Microsoft is in discussions to acquire TikTok, highlighting his preference for a bidding war to ensure the "best deal." The news comes as pressure mounts on TikTok’s parent company, ByteDance, to divest its U.S. operations amid national security concerns.

Bidding War Encouraged

Speaking to reporters, Trump stated, "A lot of interest in TikTok, great interest in TikTok," and emphasized his support for competitive bids, saying, "I like bidding wars because you make your best deal." He also mentioned other potential bidders, including Elon Musk and Larry Ellison, hinting at a diverse range of interest in the social media platform.

During a January press conference, Trump insisted that any deal would require U.S. entities to hold at least a 50% stake in TikTok. Without a deal, he argued, the platform would be "worthless," but with U.S. approval, he estimated its value at "like a trillion dollars."

Executive Order Buys Time

On Jan. 20, Trump issued an executive order delaying a 75-day deadline for ByteDance to divest TikTok or face a U.S. ban. This extension gives interested parties more time to negotiate a deal.

Trump described the situation as "very cut and dry," outlining two outcomes: either a buyer acquires TikTok, secures jobs, and ensures platform security, or the app faces shutdown.

Previous and Current Bids

Microsoft’s interest echoes earlier negotiations in 2020, when it competed with Oracle and Walmart for a stake in TikTok. While Oracle and Walmart later announced plans to purchase a combined 20% stake in TikTok, those deals ultimately fell through.

Other recent bidders include an Employer.com-led investor group and Perplexity AI, a search engine operator. Earlier interest was reported from former U.S. Treasury Secretary Steven Mnuchin and billionaire Frank McCourt.

Musk and Ellison Among Potential Buyers

Trump added intrigue by suggesting that Elon Musk could purchase TikTok if he were interested. Trump also singled out Larry Ellison, Oracle’s founder, who was present during a recent press conference, saying, “I’d like Larry to buy it too.”

The unfolding negotiations may reshape the future of TikTok in the U.S., a platform that has faced scrutiny over its Chinese ownership.