A 3D-printed miniature mannequin of U.S. President-elect Donald Trump and TikTok emblem are seen on this illustration taken January 19, 2025.
Dado Ruvic | Reuters
President Donald Trump desires a U.S. investor to take a significant stake in ByteDance’s TikTok. A number of events are in competition at the same time as potential consumers face a litany of authorized hurdles and boundaries.
After stepping in to restore TikTok in the U.S. and delaying a legislation that will successfully ban the app, Trump is in search of long-term avenues to maintain the favored platform afloat.
He has put ahead a proposal for an American stakeholder to purchase the corporate after which promote a 50% stake to the U.S. authorities, which is able to collectively run the app together with the personal social gathering.
So, who’re the seemingly contenders for probably the most widespread apps within the U.S.?
Elon Musk
Trump has already flagged a number of main buyers inside his internal circle as acceptable consumers, one in every of which is Tesla and SpaceX proprietor Elon Musk.
The world’s richest particular person is main Trump’s new Division of Authorities Effectivity, has shut enterprise ties to China and has voiced opposition to the TikTok ban.
Bloomberg reported earlier this month that the Chinese language authorities was contemplating a plan to have Musk purchase TikTok’s U.S. operations, citing nameless sources. That adopted a report from the Wall Avenue Journal, which claimed TikTok’s CEO had been soliciting advice from Musk forward of Trump’s inauguration.
CNBC was unable to achieve Musk for remark.
“Elon Musk continues to be entrance and middle as a possible bidder for TikTok which seemingly consists of some tech companions/outdoors buyers to get a deal completed,” Wedbush stated in a analysis observe on Wednesday.
“Musk could be hand picked by Beijing and his ironclad relationship with Trump would make this a really logical alternative in our view,” the observe added.
Nat Schindler, an analyst at Scotiabank, additionally famous that Musk’s acquisition of Twitter has demonstrated his curiosity in international social media platforms. Nevertheless, he additionally sees some potential obstacles for the tech tycoon.
“Musk is underneath fireplace already for proudly owning X and the notion that he’s utilizing it to advertise sure political concepts, and any involvement in TikTok may draw further fireplace and doubtlessly antitrust scrutiny,” Schindler stated.
Larry Ellison
Trump has additionally stated he’d “like” to see Oracle Chairman Larry Ellison purchase the platform.
Ellison, a longtime Trump supporter, stood beside the President at a press conference on his AI infrastructure investment plans on Tuesday, the place Trump was requested questions on a possible TikTok deal.
“What I am desirous about saying to anyone is, purchase it, and provides half to america of America. Half and we’ll provide the allow,” Trump stated earlier than turning to Ellison to ask if the deal sounded cheap.
“Seems like a superb deal to me Mr. President,” Ellison replied.
Ellison and his firm are presently on the middle of the TikTok dilemma, working as a cloud infrastructure supplier for ByteDance within the U.S.
Given its current relationship with Tiktok, Oracle and is “instantly invested in Tiktok’s success within the area,” Scotiabank’s Schindler stated.
Ellison had bid for Tiktok, together with Walmart, again in 2020 when Trump first pushed for a ban on the platform. Neither firm responded to CNBC’s request for remark.
Trump had approved of the Walmart-Oracle deal in precept, which might’ve seen the tech and retail giants companion to take over the video-sharing app within the U.S., avoiding a shutdown. Nevertheless, the Trump administration’s try and ban TikTok within the U.S. fell by means of within the face of authorized challenges.
Ellison later joined a group of investors that helped Elon Musk purchase social media platform Twitter, now referred to as X, in 2022.
“[We believe] Oracle/Ellison may play a pivotal function in any deal given their key know-how partnership with TikTok and his look on the White Home with Undertaking Stargate,” Wedbush stated.
Wedbush added that it expects a slew of TikTok bids to come back over the approaching weeks from a number of gamers with Musk and Ellison main the pack.
Large gamers, severe cash
Along with Musk and Ellison, specialists flagged a number of different events more likely to be eager about a possible deal for TikTok, including that the boundaries to entry had been excessive.
Given the monetary stakes of a TikTok deal, it is unlikely that some rogue investor goes to swoop in and purchase the platform on a budget, Paul Triolo of Albright Stone Group advised CNBC.
“Whereas an up-to-date valuation on TikTok is tough to give you, it’s more likely to the order of $40-80 billion, which means whoever decides to leap in needs to be prepared with some severe cash,” he stated.
He added that potential suitors are more likely to embody a few of America’s largest social media and know-how gamers, comparable to Meta and Google, along with Musk’s X.
Meta and Google did not instantly reply to a CNBC inquiry.
Sarah Kreps, the director of the Tech Coverage Institute at Cornell College, nevertheless, warned that gamers comparable to Meta, Google and Musk getting a considerable stake in TikTok may increase antitrust questions.
Scotiabank analyst Nat Schindler famous that there have been additionally a lot of different gamers, together with current buyers BlackRock, Coatue, and Basic Atlantic, who personal a large chunk of TikTok’s dad or mum firm. In accordance with him, a few of these buyers are more likely to take part in any sale of the U.S. platform by investing within the new entity.
“Different giant VCs, hedge funds, and asset managers from Tiger to Constancy would additionally seemingly present curiosity in a quick rising international platform with such an enormous viewer base,” stated Schindler, including that discovering buyers to personal part of Tiktok will not be an issue.
MrBeast
The fervor surrounding a purchase order of TikTok U.S. has additionally seen some unconventional gamers enter the fray.
Social media celebrity MrBeast — actual identify Jimmy Donaldson — who has greater than 100 million TikTok followers has posted a number of movies by which he indicated severe curiosity in shopping for the platform, claiming he has had talks with billionaires.
In a single video, the web persona claimed he had an official offer ready, jesting that he is likely to be the brand new TikTok CEO.
Media reports have additionally talked about Donaldson and a bunch of buyers making ready to make a bid for TikTok.
On Thursday, Matthew Hiltzik, a spokesperson for Donaldson, advised CNBC that “A number of potential consumers are in ongoing discussions with Jimmy, however he has no unique agreements with any of them.”
‘The Individuals’s Bid for TikTok’
Led by Undertaking Liberty Founder Frank McCourt and involving Canadian businessman and TV persona Kevin O’Leary, “The Individuals’s Bid for TikTok,” has made a $20 billion money supply to purchase TikTok.
O’Leary advised CNBC final yr that he wished to buy the platform at a discount as any potential deal will not embody TikTok’s unique algorithm. The group stated it already has a alternative for the algorithm to make use of for TikTok U.S.
Following Trump’s feedback on a 50% stake within the platform, each McCourt and O’Leary advised CNBC this week that they had been eager about a TikTok deal and had been hoping to work with Trump to make it occur.
McCourt has additionally advised CNBC that he desires TikTok to run a decentralized social networking protocol, or DSNP, overseen by the Undertaking Liberty Institute, a nonprofit based by the billionaire.
Bidding curiosity apart, a lot of authorized and tech specialists have advised CNBC that Trump’s govt order to delay the TikTok ban contradicts the Supreme Courtroom’s earlier ruling to uphold the PAFACA and will face authorized opposition.
O’Leary additionally advised CNBC on Monday {that a} TikTok deal couldn’t occur under the current law, after the Supreme Courtroom upheld an impending ban on TikTok underneath the Protecting Americans from Foreign Adversary Controlled Applications Act, or PAFACA, on Sunday.
Beijing and its pending negotiations with Trump concerning commerce with the U.S. can be anticipated to play a figuring out consider whether or not the Chinese language authorities would enable ByteDance to make a divestiture.
“On this recreation of excessive stakes poker between the Trump Administration and Beijing it is clear TikTok is an enormous chip on the desk,” Wedush stated
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