TikTok US Acquisition: Trump Favors Musk or Ellison
US President Donald Trump has expressed support for the acquisition of TikTok's US operations by Elon Musk or Larry Ellison.
Trump's Proposal: 50-50 Joint Venture
Trump envisions a deal whereby a US company purchases half of TikTok, in exchange for a "permit" from the US government.
Financial Considerations
Experts suggest that financial motivations drive the interest in a TikTok acquisition. Wall Street analysts predict numerous bids, with Musk possibly favored due to his existing relationship with TikTok.
Legal Hurdles
However, legal experts question the validity of a 50-50 joint venture under existing laws aimed at protecting Americans from foreign adversary-controlled applications. A "qualified divestiture" may be required to sever TikTok's ties to its Chinese parent company, ByteDance.
Challenges to Trump's Executive Order
Trump's executive order pausing the TikTok ban for 75 days could face legal challenges. Critics may argue that the order exceeds his authority and violates the law's requirement for prompt enforcement.
Eligibility of Challengers
Only a limited number of parties have standing to challenge a potential 50-50 venture, including Congress and TikTok competitors. However, this limited pool could provide Trump with some room for his plan to proceed.
Implications for the Tech Sector
The TikTok acquisition saga has broader implications for US-China relations and the tech industry. Experts suggest that negotiations over TikTok could influence the outcome of pending tariff discussions.