A sale was thought close to agreement, but was put in doubt after the United States president's warning on Friday.
What we don't know: It is unclear whether the Microsoft offer involves participation in ByteDance from USA -based venture capital investors, some of which reportedly have had interest in helping carve 0ut TikTok.
It comes amid criticism of Mr Trump's threat as an attack on free speech.
TikTok, especially popular with young audiences who create and watch its short-form videos, has an estimated one billion users worldwide.
After weeks of rumors and pressure, Trump said Friday he was preparing to bar the app from operating in the United States, perhaps by executive order on Saturday.
The recent discovery it is performing "clipboard snooping" has also caused some to worry about privacy concerns for the app.More news: Hyperscape Console Release Date Confirmed by Ubisoft
She has said security is the app's highest priority and called for users to continue their support. "We continue to evaluate future policy". However, rapid and exponential growth over the course of 2019 and 2020 saw the app break into the top 10 most downloaded social media apps of the year.
A sale of the USA operation to Microsoft, which owns LinkedIn, would give the U.S. tech giant a far greater presence in social media, an area dominated by rivals. Just this week, TikTok announced it hired Sandie Hawkins as GM of global business solutions to head its ad sales team in the U.S. Hawkins had been a VP at Adobe's advertising cloud division.
Media captionWATCH: Will TikTok be banned?
Microsoft has not commented publicly on that report.
Again, it's not clear what executive powers would actually allow Trump to put in place a US -wide ban of the application, but it looks like ByteDance is working with parties in the USA on a deal that assumes he'd be able to do so unless the Chinese company divests entirely its USA -based TikTok operations to an American owner.
"Americans should be concerned", National Security Advisor Robert C. O'Brien said in June.More news: Vietnam reports 40 more Covid-19 cases, total rises to 586
He tweeted: "This is getting freakish".
"I want to say thank you to the millions of Americans who use TikTok every day, bringing their creativity and joy into our daily lives", TikTok's USA general manager, Vanessa Pappas, said in the video posted Saturday to TikTok and other social media platforms. The White House has yet to comment on whether it would allow the divestiture to take place.
Alongside this the U.S. has also criticised Beijing's handling of coronavirus outbreaks. She said, "I want to say thank you to the millions of Americans who use TikTok every day bringing their creativity and joy into our daily lives".
Now, TikTok is responding to the news and they say they don't plan on "going anywhere".
"We appreciate the support, we're here for the long run", Pappas said.More news: Katie Price breaks both her feet on family holiday