Microsoft Reportedly Reenters Negotiations to Acquire TikTok, with Oracle at the Helm

Is it really 2025 already? Time flies, and once again, Microsoft is making headlines with whispers of a possible acquisition of TikTok.

If you haven’t caught up with the recent happenings, here’s a quick recap. Last year, Congress passed a law demanding that TikTok, owing to its Chinese origins, either finds a new owner or winds down its operations in the U.S. This legislation sailed past President Joe Biden without a hitch, cementing its place as law. TikTok, standing its ground against divestiture, went dark last Sunday. However, it surfaced again in no time, accompanied by a pop-up thanking incoming President Trump for providing a temporary respite.

President Trump’s intervention gives TikTok a 90-day grace period. Yet, despite this temporary relief, it remains off Google Play and Apple’s app store, in alignment with the law. Thus, TikTok still faces a crossroads: either shut down domestically or secure a buyer soon.

And now, here’s where it gets intriguing. NPR and The Verge are buzzing with news that Microsoft might be gearing up to take another stab at purchasing TikTok.

The app’s spellbinding algorithm has been both celebrated and criticized globally, all thanks to its addictive nature. It’s become a breeding ground for echo chambers and has drawn fire for potentially accelerating radical ideologies. To the U.S. government, it’s a perceived threat, given its links to Bytedance and, allegedly, the Chinese Communist Party. Concerns swirl around the potential use of TikTok for spreading propaganda or surveilling U.S. citizens. Meanwhile, across the Atlantic, the EU is probing its impact on the surge of extremist parties and its hand in disseminating pro-Putin content.

Rumor has it that the White House is eyeing a fix where Oracle would take over TikTok’s global operations, letting Bytedance hold a minor stake. Microsoft’s name is also tossed around in these talks, but specifics about their role remain under wraps. So far, everyone involved is keeping their lips sealed.

TikTok, a sensation among the younger Gen Alpha and Gen Z crowds, stands out in the social media landscape. While giants like Meta boast Facebook and Instagram, Google cherishes YouTube, and Amazon prides itself on Twitch, Microsoft holds LinkedIn.

True, LinkedIn is a powerhouse in its own right, bringing commercial success. But it doesn’t quite stir the cultural pot as other social networks do. Imagine if Microsoft were to wield the cultural sway of a platform like TikTok. Such a move could supercharge its consumer lines like Windows, Surface, and Xbox. We could see features like Xbox and TikTok integration or in-built video editing apps on Windows inspired by TikTok’s creativity. Of course, remember similar predictions when Microsoft acquired Skype — we’ll let history speak on that one.

Realistically, Microsoft owning TikTok seems unlikely. Nonetheless, TikTok is a significant client for Microsoft’s Azure AI, using its machine learning capabilities. Yet, most of TikTok’s infrastructure sits within Oracle’s cloud, suggesting that Microsoft’s stake might just circle back to its Azure AI partnership.

But imagine the possibilities.