Microsoft Reportedly Re-Engages in Acquisition Talks for TikTok, Led by Oracle

Is it really 2025 already? Well, here we are, and the buzz is that Microsoft might once again be eyeing TikTok for acquisition.

In case you missed it, last year, a significant move by the United States Congress mandated that China-based TikTok must either divest its US operations or cease them entirely. Former President Joe Biden didn’t oppose this legislation, which effectively turned into law. TikTok’s refusal to divest resulted in a temporary shutdown last Sunday. However, it wasn’t long before the platform came back online, with a message expressing gratitude to the newly sworn-in President Trump for giving it a lifeline.

Currently, President Trump has granted TikTok a 90-day reprieve. However, the app hasn’t made its way back to Google Play or the Apple Store due to existing legal stipulations. So, TikTok remains in a precarious position, needing to either halt its operations in the US or find a suitable buyer in the coming months.

NPR, as highlighted by The Verge, has indicated that Microsoft is back in the mix, potentially vying for TikTok once more.

This short-form video app has faced global scrutiny for its addictive algorithms, which are infamously adept at forming echo chambers and fostering various forms of radicalism. The US government has flagged it as a national security threat, citing parent company ByteDance’s connections to the Chinese Communist Party. Concerns include the potential use of TikTok for propaganda or tracking American citizens. Meanwhile, the European Union is also delving into TikTok’s potential impact on the rise of extremist factions across Europe and its role in disseminating pro-Putin narratives from Russia.

Reports suggest a scenario where Oracle might take over TikTok’s global operations, with ByteDance retaining a minority stake, while Microsoft remains in the conversation. Details about Microsoft’s level of involvement remain sparse, as all parties have so far stayed mum.

TikTok, a social juggernaut, resonates deeply with Gen Alpha and Gen Z. When you consider the digital landscape, Meta boasts Facebook and Instagram, Google reigns with YouTube, Amazon streams through Twitch, and Microsoft stands with… LinkedIn.

Sure, LinkedIn is sizeable and lucrative, but its practical nature lacks the cultural pull that more mainstream platforms command. If Microsoft were to sway or even own a platform like TikTok, it could invigorate its existing consumer offerings—think Windows, Surface, and Xbox. Imagine TikTok seamlessly integrating with Xbox, or a native video-editing suite tailored for TikTok enthusiasts, built right into Windows. Though let’s be honest, similar forecasts were made during Microsoft’s acquisition of Skype, and we know how that story unfolded.

The odds of Microsoft actually taking over TikTok are slim. Yet, TikTok is one of the significant customers leveraging Microsoft’s Azure AI services, where many of its machine-learning capabilities thrive. Despite this, most of TikTok’s infrastructure is tucked under Oracle’s cloud umbrella. Thus, if I were to wager, Microsoft’s links to TikTok probably don’t extend much beyond their Azure collaborations.

But imagine the possibilities, just for a moment.