Trump Considers US Stake in TikTok Deal with Musk or Ellison
US President Donald Trump has expressed support for potential acquisitions of TikTok by Elon Musk or Larry Ellison, providing further insight into his vision for preserving the social media platform's US operations.
Proposed Arrangement
Trump proposed a "permit" arrangement where the US would acquire half of TikTok in exchange for allowing it to continue operating in the country. "I would be if he wanted to buy it," Trump said of Musk, the founder of Tesla and SpaceX. "I’d like Larry to buy it too," he added, referring to Oracle chairman Larry Ellison.
Legal Concerns
Legal experts have raised concerns about the viability of a 50-50 joint venture as a solution to TikTok's ban, which was imposed due to national security concerns related to its Chinese ownership. A "qualified divestiture" would require ByteDance, TikTok's parent company, to sever all ties with the app.
Financial Incentives
Despite the legal obstacles, there are significant financial incentives for both Trump and US companies interested in acquiring TikTok. The platform has a large user base and generates substantial revenue.
Global Negotiations
Trump's comments also highlighted the ongoing trade negotiations with China. He suggested imposing tariffs if China did not approve a proposed buyer for TikTok's US assets.
Potential Bidders
Dan Ives, an analyst at Wedbush Securities, believes that Musk has a strong position as a potential buyer due to his relations with China. Oracle may also be involved in a consortium led by Musk.
Legal Challenges
Legal challenges are anticipated if a 50-50 deal is reached. Constitutional law experts maintain that a joint venture does not fully address the legal requirements for TikTok's divestiture.
Limited Standing
However, the limited number of parties with legal standing to challenge such a deal could increase the likelihood of Trump's plan becoming a reality.
Conclusion
Trump's proposed arrangement for TikTok reflects the complex interplay between national security, trade negotiations, and financial incentives. Legal obstacles remain, but the limited standing of potential challengers could provide Trump with some flexibility in pursuing his desired outcome.