By Staff, Agencies

US President Donald Trump announced on Monday that Microsoft is in discussions to acquire TikTok, as the popular video-sharing app faces an uncertain future in the United States.

TikTok is currently under pressure due to a US law requiring its Chinese parent company, ByteDance, to divest its ownership or face a ban in the country.

When asked if Microsoft was negotiating to acquire TikTok, Trump told reporters aboard Air Force One, "I would say yes." He added, "There's a lot of interest in TikTok, there's great interest in TikTok," and suggested that a "bidding war" for the app would be a positive development.

The law banning TikTok, which took effect on January 19, was enacted over concerns that the Chinese government could use the platform to spy on Americans or manipulate public opinion.

However, Trump has temporarily suspended the ban's implementation for two and a half months to seek a resolution with Beijing.

Microsoft has emerged as a potential buyer, with analysts like Angelo Zino of CFRA Research noting that the tech giant "has had a desire to get more entrenched into the digital ad space," making TikTok a strategic investment.

TikTok temporarily shut down its US operations as the deadline for the ban approached, but service was restored after Trump pledged to issue an executive order delaying the ban to allow time for negotiations.

The company credited Trump for enabling the reversal, despite the outgoing Biden administration's earlier statement that it would not enforce the ban.

This is not the first time TikTok has faced a ban threat in the US. During his first term, Trump also attempted to ban the application over national security concerns, though the effort was ultimately halted.

The ongoing negotiations highlight the complex geopolitical and economic dynamics surrounding TikTok's operations in the US, as well as the broader tensions between Washington and Beijing over technology and data security.