TikTok Ownership Update: Trump Favors Elon Musk or Larry Ellison Acquisition
President Donald Trump expresses his preference for Elon Musk or Larry Ellison purchasing TikTok, outlining a potential deal structure to preserve the platform's US operations.
Trump's Proposed Arrangement
Trump suggests a "permit" be granted to the US in exchange for half ownership of TikTok. "I have the right to make a deal," he states, proposing a 50-50 joint venture with a US-based entity. Oracle Chairman Larry Ellison expresses enthusiasm for such an arrangement.
Legal Considerations
Experts raise concerns about the legality of a joint venture, citing a law prohibiting the TikTok app unless its Chinese parent company, ByteDance, fully divests its ownership. A joint venture may not meet the legal requirement for a "qualified divestiture." Legal challenges to any such agreement are anticipated.
Financial Incentives
Despite the legal uncertainties, financial motivations may drive interest in acquiring TikTok. Wedbush Securities analysts believe TikTok holds significant value in negotiations with China over potential tariffs.
Musk's Position
Elon Musk, owner of X, has long opposed a TikTok ban, advocating for freedom of speech. He acknowledges the imbalance in TikTok's operations between the US and China.
Outlook
The viability of a joint venture remains uncertain. Constitutional law experts express skepticism about whether it would fully address the legal requirements. However, the limited number of parties with legal standing to challenge the deal may provide some flexibility for Trump's proposal.
Conclusion
President Trump's latest comments provide further insight into his thinking on the future of TikTok's US operations. While the legal and political complexities remain, financial incentives and political considerations continue to shape the potential acquisition scenarios.