TikTok’s Future Hangs in the Balance as Trump Seeks American Stakeholder
The popular social media platform TikTok is at the center of a heated debate, with President Donald Trump pushing for an American investor to take a major stake in the company. This move comes after Trump delayed a law that would have effectively banned the app in the US. The President’s proposal involves an American stakeholder buying the company and then selling a 50% stake to the US government, which would jointly run the app with the private party.
Elon Musk Emerges as a Leading Contender
Tesla and SpaceX owner Elon Musk has been flagged as a potential buyer, thanks to his close business ties to China and his opposition to the TikTok ban. Bloomberg reported that the Chinese government is considering a plan for Musk to acquire TikTok’s US operations. Musk’s acquisition of Twitter has demonstrated his interest in global social media platforms, but some experts warn that his involvement in TikTok could draw antitrust scrutiny.
Oracle’s Larry Ellison Also in the Running
Trump has also expressed interest in Oracle Chairman Larry Ellison purchasing the platform. Ellison, a longtime Trump supporter, has an existing relationship with TikTok, operating as a cloud infrastructure provider for ByteDance in the US. His company bid for TikTok, along with Walmart, back in 2020, and experts believe Oracle/Ellison could play a pivotal role in any deal.
Other Potential Buyers Emerge
In addition to Musk and Ellison, experts expect a slew of TikTok bids to come from a host of players, including Meta, Google, and existing investors BlackRock, Coatue, and General Atlantic. Social media superstar MrBeast, who has over 100 million TikTok followers, has also expressed interest in buying the platform, claiming he has had talks with billionaires. The People’s Bid for TikTok, led by Project Liberty Founder Frank McCourt and involving Canadian businessman Kevin O’Leary, has made a $20 billion cash offer to buy TikTok.
Legal Hurdles Ahead
Despite the interest from potential buyers, a number of legal and tech experts warn that Trump’s executive order to delay the TikTok ban contradicts the Supreme Court’s earlier ruling to uphold the PAFACA and could face legal opposition. Beijing’s pending negotiations with Trump regarding trade with the US will also play a determining factor in whether the Chinese government would allow ByteDance to make a divestiture.
A High-Stakes Game
The fate of TikTok hangs in the balance, with the US government, Chinese government, and potential buyers engaged in a high-stakes game of negotiation and maneuvering. As the situation unfolds, one thing is clear: the future of TikTok will have far-reaching implications for the tech industry and beyond.
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