Trump Favors Elon Musk or Larry Ellison Acquisition of TikTok with US Partnership
President Donald Trump has expressed support for the acquisition of TikTok by either Elon Musk or Larry Ellison. He suggested a potential deal involving the US acquiring a 50% stake in the platform in exchange for a "permit."
Oracle's Ellison Endorses the Suggestion
Larry Ellison, chairman of Oracle, welcomed the idea, stating, "It sounds like a good deal to me, Mr. President."
Possible Legal Implications
Legal experts raise concerns about the legality of a joint venture, as it may not fully address the ban on TikTok's operation in the US. The Protecting Americans from Foreign Adversary Controlled Applications Act mandates a "qualified divestiture" that severs ByteDance's operational relationship with TikTok.
Competition and Bids Expected
Analysts predict numerous bids for TikTok, with Elon Musk and X expected to be strong contenders. Oracle could also be involved due to its role as a host for TikTok.
Constitutional Challenges
Constitutional law experts suggest that a 50-50 joint venture would likely not meet the legal requirements for divestiture. A controlling stake in TikTok by the US would still require foreign adversary ownership below 20%.
Additional Legal Hurdles
Before any deal can be finalized, various legal challenges may arise. The president's executive order pausing enforcement of the TikTok ban could face legal scrutiny due to the specific requirements for divestiture under the law.
Limited Parties with Standing to Challenge
Despite these legal concerns, Trump may have some flexibility in pursuing his proposed deal due to a limited number of parties with standing to challenge a 50-50 venture. Only Congress and TikTok's competitors could potentially file legal objections.