Reports Suggest Microsoft Reenters Negotiations to Acquire TikTok, with Oracle at the Forefront

Is it really 2025 already? It seems so. And here we are again with rumors swirling about Microsoft stepping back into the spotlight to potentially acquire TikTok once more.

For those not caught up, let’s rewind a bit. Last year, Congress in the U.S. passed legislation forcing TikTok, which is based in China, to either sell off its American business operations or face closure. The former President, Joe Biden, allowed this bill to become law without a veto. TikTok decided against selling and subsequently went offline this past Sunday. However, within mere hours, it was back in action, armed with a message of gratitude to President Trump, who decided to offer TikTok a temporary reprieve.

President Trump has given TikTok a temporary 90-day grace period, but the app remains unavailable on Google Play and Apple’s app stores due to the standing legislation. As such, TikTok is still facing the choice of shutting down its U.S. operations or finding a buyer in the coming months.

Sources from NPR, through The Verge, report that Microsoft is once again eyeing a potential purchase of TikTok.

Globally, TikTok’s renowned algorithm has faced criticism for being disturbingly addictive and for fostering echo chambers, which, in turn, can lead to various forms of radicalization. The U.S. government views it as a national security threat due to ByteDance, TikTok’s parent company, and its ties to the Chinese Communist Party. The concern is that TikTok could potentially serve as a tool for spreading propaganda or tracking Americans. Similarly, the European Union is probing TikTok’s role in promoting extremist political movements and the spread of pro-Putin sentiment within its borders.

Reportedly, the White House is considering having Oracle acquire TikTok’s worldwide operations while allowing ByteDance to retain a minority stake. Microsoft, it seems, is also part of the ongoing discussions, though the extent of their involvement is not entirely clear. All companies mentioned have remained tight-lipped about the situation.

TikTok continues to be a massive social media player, especially popular among Gen Z and Gen Alpha.
(Image credit: Windows Central)

In the social media world, everyone seems to have carved out their niche. Meta boasts Facebook and Instagram, Google enjoys a dominant presence with YouTube, Amazon commands attention with Twitch, and Microsoft holds onto LinkedIn.

While LinkedIn is substantial and profitable, its straightforward, professional nature doesn’t exactly give Microsoft cultural sway like its peers. Acquiring a powerhouse like TikTok could potentially supercharge Microsoft’s consumer tech platforms like Windows, Surface, and Xbox. Just imagine seamless integration of TikTok with Xbox or introducing a TikTok-style video editing feature native to Windows. Though, let’s not forget the hopeful headlines when Microsoft acquired Skype—and we all know how that panned out.

In reality, it’s a stretch that Microsoft will actually end up owning TikTok. The closest tie they have is through TikTok’s use of Azure for its AI features. Much of TikTok’s infrastructure operates on Oracle cloud, with Microsoft’s part likely restricted to their Azure AI partnership.

But, who knows what the future holds?