The Trump administration’s attempts to ban TikTok in the United States faced legal challenges that eventually led to its failure. In response, a potential resolution emerged when President Donald Trump approved of a deal involving Walmart and Oracle. This agreement would have seen the retail and tech giants take control of the popular video-sharing app in the U.S. However, as the situation develops, several high-profile investors and firms are now being considered as potential buyers for TikTok.
Among these investors is Elon Musk, owner of Tesla and SpaceX, who is flagged by Trump as an acceptable buyer. Additionally, Oracle Chairman Larry Ellison, who leads Trump's new Department of Government Efficiency and has close business ties to China, is another potential suitor. Trump expressed a preference for Ellison's involvement, stating that he'd like to see him purchase the platform.
Oracle's direct investment in TikTok's success in the region, as noted by Scotiabank's Nat Schindler, underscores its potential role in any acquisition. Schindler remarked, "Other large VCs, hedge funds, and asset managers from Tiger to Fidelity would also likely show interest in a fast-growing global platform with such a huge viewer base."
"Sounds like a good deal to me Mr. President."
— Larry Ellison
The legal landscape surrounding TikTok remains contentious. Trump's executive order to delay the TikTok ban conflicts with the Supreme Court's ruling to uphold PAFACA, potentially leading to legal opposition. Meanwhile, Matthew Hiltzik, spokesperson for Jimmy Donaldson (also known as MrBeast), commented on Trump's proposal for an American stakeholder to buy the company and sell a 50% stake to the U.S. government as a "reasonable" deal.
"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."
— Donald Trump
Donaldson himself has shown interest in acquiring TikTok and has engaged in discussions with several billionaires. However, Hiltzik clarified that Donaldson has no exclusive agreements with any of them.
"Several potential buyers are in ongoing discussions with Jimmy, but he has no exclusive agreements with any of them."
— Matthew Hiltzik (spokesperson for Donaldson)
A $20 billion cash offer led by Project Liberty Founder Frank McCourt and Canadian businessman Kevin O'Leary highlights the intense interest in acquiring TikTok. However, Paul Triolo of Albright Stone Group cautioned against expecting a lowball purchase, stating that any acquisition would require significant financial resources.
"While an up-to-date valuation on TikTok is difficult to come up with, it is likely to the order of $40-80 billion, meaning whoever decides to jump in has to be ready with some serious money."
— Paul Triolo
In the mix of potential buyers, discussions have emerged about the Chinese government's consideration of a plan for Musk to acquire TikTok's U.S. operations. Despite this, Sarah Kreps from Cornell University warned that involvement from major players like Meta, Google, or Musk could raise antitrust concerns.
"We believe Musk is under fire already for owning X and the perception that he is using it to promote certain political ideas, and any involvement in TikTok could draw additional fire and potentially antitrust scrutiny."
— Nat Schindler
As this complex saga unfolds, several stakeholders remain interested but cautious. The organization behind TikTok already has a replacement algorithm ready for TikTok U.S., ensuring continuity regardless of ownership changes. Despite this preparedness, neither Meta nor Google responded to inquiries about their interest in buying TikTok.
Meanwhile, experts from CNBC suggest that Trump's executive order might contradict previous Supreme Court rulings, leading to further legal scrutiny. Wedbush analysts highlighted Oracle/Ellison's potential pivotal role due to their technology partnership with TikTok.
"We believe Oracle/Ellison could play a pivotal role in any deal given their key technology partnership with TikTok and his appearance at the White House with Project Stargate."
— Wedbush