TikTok Sale: Trump Favors Elon Musk or Larry Ellison Deal with Conditions
President Donald Trump has expressed preference for Elon Musk or Larry Ellison to acquire TikTok's US operations.
Trump's Proposal
Trump proposed a "permit" system where the US would receive half of TikTok in exchange for allowing the platform to continue operating in the country. The arrangement would involve a "joint venture" with half-ownership by the US.
Ellison's Response
Oracle Chairman Larry Ellison welcomed the proposal, stating, "It sounds like a good deal to me."
Legal Considerations
Legal experts raise concerns that a joint venture may not meet the requirements of the Protecting Americans from Foreign Adversary Controlled Applications Act, which mandates a "qualified divestiture" to sever ByteDance's control over TikTok.
Constitutional Challenges
Constitutional law professors suggest that an equal partnership with foreign influence may not satisfy the law. US control is deemed necessary for security reasons.
Possible Challenges
Lawyers predict potential legal challenges to any deal. The president's executive order pausing the ban for 75 days could face scrutiny over his authority to do so.
Limited Litigation Options
However, the limited number of parties with legal standing to challenge a 50-50 venture gives Trump potential leeway for his proposal.
Financial and Geopolitical Implications
The TikTok deal is part of broader negotiations with China over tariffs. Analysts speculate that 10-15 bids are anticipated, with Elon Musk's X considered a leading contender, possibly partnering with Oracle.