President Trump suggested a novel approach to the ongoing TikTok saga: a joint venture between the US government and a private buyer, potentially Elon Musk or Larry Ellison. This proposition introduces a new layer of complexity to the already contentious debate surrounding the popular social video app.
Trump, speaking at a White House event with Oracle Chairman Larry Ellison, asserted his authority to broker a deal, proposing that a buyer acquire TikTok and cede half ownership to the US government in exchange for an operating permit. This unprecedented arrangement highlights the administration’s continued focus on national security concerns related to the Chinese-owned platform.
The President’s remarks follow a weekend where TikTok experienced a temporary outage and a recent executive order extending the deadline for a sale by 75 days. While the legality of the extension remains unclear, the pressure on ByteDance Ltd., TikTok’s parent company, to divest continues to mount. ByteDance has publicly resisted selling TikTok, but the Supreme Court’s backing of a national security law compelling a sale or shutdown, coupled with the recent service disruption, may force a reconsideration.
Trump emphasized the precarious nature of TikTok’s value, contingent on US government approval. He stated that the app’s worth could range from zero to a trillion dollars, underscoring the significant leverage held by the US in this situation. China’s foreign and commerce ministries have not yet responded to requests for comment on the potential for US government ownership. However, on Monday, the Foreign Ministry stated that operational and acquisition decisions rest with individual companies, expressing hope for an “open, fair, just and non-discriminatory environment” from the US.
Potential Bidders Emerge for TikTok
Despite the uncertainty, potential buyers are already expressing interest. A consortium of American investors, including prominent content creator MrBeast, announced a bid. Billionaire Frank McCourt, former owner of the Los Angeles Dodgers, and “Shark Tank” investor Kevin O’Leary also submitted a formal offer.
O’Leary, who has discussed his bid with Trump at Mar-a-Lago, confirmed a $20 billion offer based on an estimated value of TikTok’s US operations. He emphasized his group’s financial readiness and willingness to acquire TikTok without its proprietary algorithm, addressing concerns about potential Chinese surveillance. O’Leary expressed confidence in a swift 90-day closing timeline, contrasting with potential antitrust complications facing other bidders like Elon Musk, who owns the social media platform X (formerly Twitter).
Other potential suitors include Amazon.com Inc. and Oracle, both of which have existing business relationships with TikTok. Oracle notably played a role in restoring TikTok’s service after the recent outage, despite potential legal repercussions.
Ellison’s Presence and Trump’s Interest
Ellison’s presence at the White House, ostensibly to announce a new AI venture with SoftBank Group Corp. and OpenAI, fueled speculation about Oracle’s potential involvement in a TikTok acquisition.
Trump concluded his remarks with a surprising admission, suggesting he might download TikTok himself, citing its popularity among young voters and acknowledging a “warm spot” for the platform. This unexpected statement further underscores the complex and evolving nature of the TikTok situation. The future of TikTok remains uncertain, but the potential for US government involvement adds a significant new dimension to the ongoing negotiations.
