TikTok Sale: Bidding War for US Operations Intensifies
President Donald Trump has sparked a heated bidding war for the sale of TikTok's US operations, floating the names of several prominent tech moguls as potential buyers. This move aims to circumvent a Congressional ban imposed on the platform over national security concerns.
Key Players in the Bidding War
Trump has publicly mentioned the following individuals:
* Elon Musk: CEO of Tesla (TSLA) and X
* Larry Ellison: Chairman and CTO of Oracle (ORCL)
* Satya Nadella: CEO of Microsoft (MSFT)
Other parties who have expressed interest include:
* Jeff Bezos: Founder of Amazon (AMZN)
* Frank McCourt: Founder of Project Liberty
* Kevin O'Leary: Investor on "Shark Tank"
* Jesse Tinsley: CEO of Employer.com
Microsoft's Failed Bid and Possible Involvement
Microsoft, alongside Walmart (WMT), previously attempted to acquire TikTok during Trump's first term. Trump confirmed Microsoft's potential involvement in the current bidding process. However, Microsoft has remained tight-lipped, with CEO Satya Nadella expressing concerns about the government's shifting requirements in the past.
Elon Musk's Potential Role
Bloomberg and The Wall Street Journal report that Chinese government officials have discussed selling TikTok's US business to Elon Musk. Musk has not publicly commented on the matter, but he has consistently opposed a TikTok ban, arguing for freedom of speech. Experts predict that Musk could navigate US legal hurdles due to TikTok and X having distinct user bases.
Larry Ellison and Oracle
Trump has sent mixed signals regarding Ellison's potential role. He initially expressed support for Ellison, but later denied ongoing discussions. NPR reported that the Trump administration was considering moving control of TikTok to Oracle, with Ellison overseeing algorithm and data collection. However, Trump has since denied this plan.
Perplexity AI's Proposal
Perplexity AI, an AI startup backed by Amazon and Nvidia (NVDA), has submitted a proposal to merge TikTok's US business with itself. Under this plan, the US government would receive half ownership following an IPO. ByteDance's existing investors would receive equity in the new entity.
Other Interested Parties
Frank McCourt and Kevin O'Leary have formed a group that is willing to pay up to $20 billion for TikTok. Jesse Tinsley and YouTuber "MrBeast" have also announced a cash bid. However, the group faces challenges due to the existing TikTok ban.
President Trump's deadline for a deal is in 30 days, setting the stage for further intense negotiations and potentially a significant shakeup in the social media landscape.