Microsoft Reenters Discussions to Acquire TikTok, Led by Oracle

Is it 2025 already? It seems like we’re getting another twist to the TikTok saga, with whispers of Microsoft eyeing the social media giant once more.

Here’s a quick recap: Last year, the U.S. Congress rolled out a new mandate, compelling TikTok, a Chinese-owned platform, to either sell its American operations or shut down completely. This bill, which went unchallenged by President Biden, became law. TikTok’s refusal to comply led to its temporary blackout last Sunday. Surprisingly, it flickered back to life within hours, thanks to a pop-up message acknowledging President Trump’s gesture of goodwill, giving the company a temporary reprieve.

Trump’s administration granted TikTok a 90-day extension, but the app remains absent from Google Play and Apple’s App Store, owing to the legal constraints. This leaves TikTok with two options: find a new owner or cease operations in the U.S. in the near future.

An intriguing twist is NPR’s report, echoed by The Verge, suggesting Microsoft could indeed be throwing its hat in the ring to purchase TikTok.

TikTok’s meteoric rise and its addictive nature have sparked global criticism. The platform’s algorithm is under fire for fostering echo chambers and potentially fueling various types of radicalization. The U.S. government has pegged TikTok as a national security threat, accusing its parent company, ByteDance, of having close ties to the Chinese Communist Party. Concerns abound that TikTok might spread propaganda or monitor American users. Meanwhile, the European Union is delving into TikTok’s alleged role in the rise of extremist parties and its dissemination of pro-Putin content.

Rumor has it that the White House is mulling over a deal where Oracle would acquire TikTok’s global operations, keeping ByteDance onboard with a minority share. Microsoft is purportedly part of the ongoing discussions, though details on Microsoft’s involvement remain hazy. As of now, all the companies involved have opted to remain tight-lipped.

In the broader landscape, consider the major players: Meta juggles Facebook and Instagram, Google owns YouTube, Amazon has Twitch, yet Microsoft is hitching its wagon largely to LinkedIn.

Now, LinkedIn is a formidable business, no doubt. Yet, it doesn’t quite capture the cultural pulse like other social media platforms. Acquiring TikTok could redefine Microsoft’s consumer endeavors, enriching platforms like Windows, Surface, and Xbox. Imagine seamless TikTok integration with Xbox or a bespoke video editing suite tailored for TikTok within Windows. However, such narratives were spun when Microsoft bought Skype, and we all know how that unfolded.

Even if Microsoft doesn’t end up owning TikTok, it’s important to note that TikTok is already a significant Azure AI client. Many of TikTok’s machine learning capabilities run on Microsoft’s Azure, even though the app’s primary hosting is with Oracle. Microsoft’s role may well be confined to its Azure AI agreement—just a thought.

But then again, what if it doesn’t end there?