TikTok Deal: Trump Prefers Musk or Ellison, Considers 50% Split
President Trump has expressed support for Elon Musk or Larry Ellison acquiring TikTok's US operations. He proposed a deal where the US would grant a permit to the buyer in exchange for half of the company's ownership.
Oracle's Chairman Endorses Deal
Oracle's Larry Ellison, who was present at Trump's press conference, expressed his interest in the proposed arrangement.
Joint Venture Raises Legal Concerns
Experts question the legality of a 50% joint venture, citing the Protecting Americans from Foreign Adversary Controlled Applications Act. The law mandates a complete divestiture from ByteDance, TikTok's Chinese parent company.
Financial Incentives for Potential Buyers
Despite legal challenges, financial incentives may motivate US companies to pursue TikTok's acquisition. Dan Ives of Wedbush Securities views it as a strategic move in the ongoing trade negotiations with China.
Musk, Oracle, and a Consortium as Potential Buyers
Elon Musk, X owner, is considered a front-runner in gaining Beijing's approval for an acquisition. Oracle and a potential consortium led by Musk are also in contention.
Constitutional Experts Cast Doubt on Joint Venture
Constitutional law experts express skepticism towards a 50-50 joint venture's ability to meet legal requirements. They emphasize the need for a complete divestiture from foreign entities with ties to adversarial countries.
Executive Order Pauses Ban Enforcement
Trump's executive order pauses the TikTok ban for 75 days, providing time for a deal negotiation. Legal challenges to the order, however, are likely due to its potential overreach.
Limited Parties Eligible to Challenge Joint Venture
Despite legal concerns, the limited number of parties with legal standing to challenge a 50% venture could increase the feasibility of Trump's proposal. Potential challengers include Congress and TikTok competitors like Instagram and X.