TikTok Deal: President Trump Prefers Musk or Ellison Acquisition

President Donald Trump has expressed a preference for Elon Musk or Larry Ellison acquiring TikTok, offering his latest perspective on a potential deal to preserve the platform's US operations.

"I would be if he wanted to buy it," Trump remarked about Musk, the owner of SpaceX, when asked about his support for such a deal.

"I'd like Larry to buy it, too," he added, with Oracle chairman Larry Ellison present at a press conference announcing a $500 billion AI infrastructure commitment.

The arrangement outlined by the president involves the US granting a "permit" in exchange for a 50% stake in TikTok. "I have the right to make a deal," he said. "So what I'm thinking about saying to somebody is buy it and give half to the United States of America, half, and we'll give you the permit, and they'll have a great partner." Ellison responded favorably, stating, "It sounds like a good deal to me Mr. president."

Trump's proposal aligns with his previous suggestion of a 50-50 "joint venture" involving US ownership of half of TikTok's American operations. However, concerns have been raised regarding the feasibility of such a venture given TikTok's Chinese ownership.

Legal Concerns and Expert Perspectives

Legal experts have expressed reservations about the proposed joint venture, suggesting it may not fully address the legislative ban on TikTok. Jonathan Entin, professor emeritus of law at Case Western Reserve University, raised concerns about the adequacy of an equal partnership to satisfy legal requirements.

Nicholas Creel, a business law professor at Georgia College & State University, emphasized the need for significant divestment from foreign ownership and control to comply with the law.

Jared Carter, a constitutional law expert at Vermont Law School, anticipated potential legal challenges to a 50-50 deal, arguing that it would deviate from the statutory requirement for divestiture to an American company.

Financial Considerations and Potential Bidders

Despite the legal concerns, financial incentives may drive interest in a TikTok acquisition. Dan Ives, global head of tech research at Wedbush Securities, noted the platform's strategic importance in negotiations with China over tariffs.

Musk has expressed support for a TikTok acquisition, while Oracle could potentially serve as a hosting platform. A consortium led by Musk could also emerge as a contender.

Ongoing Developments and Potential Legal Challenges

The executive order issued by President Trump pausing the TikTok ban for 75 days provides time for negotiations. However, legal challenges to the executive order and the proposed 50-50 joint venture are possible within this timeframe.

The limited number of parties with legal standing to challenge the proposal could potentially enhance Trump's flexibility in pursuing his preferred arrangement. However, concerns remain about the viability of a joint venture given the statutory requirements for divestiture and the need to address national security concerns.