Microsoft Reinitiates Acquisition Discussions for TikTok, with Oracle Taking the Lead

Is it really 2025? It looks like we’re back to the era where Microsoft is eyeing TikTok, yet again.

For those catching up, last year we saw the U.S. Congress push through a bill that left TikTok, owned by a Chinese company, in a tight spot. They were ordered to either sell their U.S. business or shut it down. Former President Joe Biden let the bill pass into law without his veto. TikTok, however, resisted the order to sell, and in consequence, the app went offline this past Sunday. Surprisingly, it quickly bounced back, complete with a message of gratitude to the newly appointed President Trump for offering a temporary reprieve.

So here we are, with President Trump granting TikTok a 90-day grace period. Despite this, the tech landscape hasn’t fully embraced the app’s return, as it remains absent from both Google Play and Apple’s app store due to existing regulations. It seems TikTok must either bow out of the U.S. or find a buyer sometime in the coming months.

Enter Microsoft, reportedly in the frame once more to potentially buy TikTok, according to a snippet from NPR relayed via The Verge.

This app, known for its addictive short-form videos, faces criticism globally for its potent algorithm, which can breed echo chambers and even radicalization. The U.S. government has labeled it a security risk, pointing to its parent company, Bytedance, and its connections to the Chinese Communist Party. The fear is that TikTok could be wielded to disseminate propaganda or monitor American users. Across the pond, the European Union is also examining TikTok’s part in fueling extremist political movements and its potential role in pushing Russian narratives friendly to Putin.

Word on the street suggests the White House is exploring a solution where Oracle could purchase TikTok’s global operations, while Bytedance would retain a minor stake in the company. Microsoft is seemingly in on these talks too, but specifics about their participation are scarce. All the companies tangled in this affair have chosen to remain tight-lipped for now.

In the vast universe of social networks, Meta rules Facebook and Instagram, Google lords over YouTube, Amazon commands Twitch… and then there’s Microsoft with LinkedIn.

Sure, LinkedIn is a heavyweight in the corporate social media arena — it’s profitable and serves its functional role well. Yet, it lacks the cultural sway that its peers wield. Imagine if Microsoft took control or even took over a dynamic network like TikTok. This could amplify its footprint across its consumer products like Windows, Surface, and Xbox. Just picture this: seamless Xbox and TikTok connectivity, or a Windows feature inspired by TikTok’s video editing capabilities. Although, as we’ve seen before with Microsoft’s acquisition of Skype, grand visions don’t always pan out as expected.

Realistically speaking, a deep dive by Microsoft into owning TikTok seems unlikely. TikTok is one of the pivotal companies tapping into Microsoft’s Azure AI resources. Many of TikTok’s machine learning enhancements depend on Azure, although most of its hosting occurs on Oracle clouds. My guess would be that Microsoft’s role doesn’t stretch much beyond its existing Azure AI partnership.

But then again, what if?