This illustration taken on January 19, 2025 shows a 3D printed miniature model of US President-elect Donald Trump and the TikTok logo.
Dado Ruvic | Reuters
President Donald Trump wants US investors to take a big stake in Bytedance’s TikTok. Several parties are in contention, even as potential buyers face a litany of legal hurdles and barriers.
After intervening to restore TikTok in the US and delay legislation that would effectively ban the app, Trump is looking for a way to keep the popular platform afloat.
He submitted a proposal for American interests to purchase the company and sell a 50% stake to the US government.
Trump reportedly said on Saturday that he was in talks with multiple people about buying TikTok and that he would likely decide on its future in the next 30 days.
So who are the candidates for one of the most popular apps in the US?
Elon Musk
Trump has already flagged several major investors within his inner circle as acceptable buyers, one of which is Tesla and SpaceX owner Elon Musk.
The world’s richest man leads the efficiency of Trump’s new government, has close business ties with China, opposite voice TikTok is banned.
Bloomberg reported earlier this month that the Chinese government is considering a plan for Musk to acquire TikTok’s U.S. operations, citing unnamed sources. It followed a report in the Wall Street Journal in which Tiktok’s CEO claimed that Seek advice from Musk ahead of Trump’s inauguration.
CNBC was unable to reach Musk for comment.
“Elon Musk remains front and center as a potential bidder for TikTok, which could include tech partners/outside investors to get the deal done,” financial services firm Wedbush said. Securities said in a research note on Wednesday.
“Musk was hand-selected by Beijing and his iron-clad relationship with Trump would make this a very logical choice in our view,” the memo added.
Scotiabank analyst Nat Schindler also noted that Musk’s acquisition of Twitter shows interest in global social media platforms.
But Paul Triolo of Albright Stone Group also sees potential obstacles for Tech Tycoon.
“Since Musk already owns “It could draw scrutiny,” he said.
larry ellison
Trump also said he likes to watch oracle Chairman Larry Ellison buys the platform.
Ellison, Longtime Trump supporter stood next to the president press conference On his AI infrastructure investment plans on Tuesday, Trump was asked about a potential TikTok deal.
“What I tell people is buy it and give half to the United States of America.
“Sounds like a lot to the president,” Ellison replied.
Ellison and his company are currently at the center of the TikTok dilemma, operating as a cloud infrastructure provider due to regulations in the US
Scotiabank’s Schindler said given its existing relationship with Tiktok, it is “directly invested in Tiktok’s success in the region.”
Ellison bid on TikTok walmartin 2020, when Trump first called for a ban on the platform. Neither company responded to CNBC’s requests for comment.
Trump had approved the Walmart-Oracle deal in principle. This would have seen the tech and retail giant’s partners take over the US video-sharing app and avoided a shutdown. However, the Trump administration’s attempt to ban TikTok in the United States has fallen in the face of legal challenges.
Ellison later joined the group of investors that helped Elon Musk buy the social media platform Twitter, now known as X, in 2022.
“[We believe] “Oracle/Ellison could play a pivotal role in any deal given its major technology partnership with Tiktok and his appearance in the White House with Project Stargate,” says Wedbush.
Wedbush added that it expects to see Tiktok bids from a number of players over the coming weeks, with Musk and Ellison leading the pack.
According to National public radio report On Saturday, the Trump administration is working on a plan to save TikTok that would involve Oracle and a group of outside investors taking effective control of its IT global operations.
Puzzled AI
California-based artificial intelligence search engine startup PRPLEXITY AI CNBC submitted a bid to Bytedance on January 18th.
Following Trump’s comments on Tiktok’s deal structure, the AI company revised its merger proposal on Sunday to also allow the U.S. government to own up to 50% in a future IPO, according to a proposal document seen by CNBC. .
The document proposes to offer Tiktok US without a recommendation algorithm in exchange for the company’s existing investors receiving shares in the merged company.
The deal reportedly brings more videos to the puzzle – recently worth about $9 billion – as it increases returns for investors amid the generative AI boom. , to compete with Openai and Google.
big companies, serious money
Experts flagged several other parties likely to be interested in a potential TikTok deal, adding that the barrier to entry is high.
According to Albright Stone Group’s Triolo, given the financial stakes in Tiktok’s deal, it’s unlikely some rogue investors will buy the platform on the cheap.
“Tiktok’s latest valuation is difficult, but could be on the order of $40-800 billion, meaning anyone who decides to jump in will need to be ready with some serious money,” he said. said.
He added that potential suitors would likely include America’s largest social media and technology players. meta and googlein addition to the x in the mask.
Meta and Google did not immediately respond to CNBC’s inquiries.
However, Sarah Kreps, director of Cornell University’s Tech Policy Institute, warned that players such as Meta, Google, and Musk could acquire significant stakes in TikTok.
Scotiabank analyst Nat Schindler pointed out that there are also many other players, including existing investors black rockCourt, and General Atlantic big chunks TikTok’s parent company. According to him, some of these investors may participate in the sale of the US platform by investing in new entities.
“Other large VCs, hedge funds, and asset managers from Tiger to Fidelity will also be interested in a rapidly growing global platform with such a huge audience base,” Schindler said. He added that finding an investor to own a portion of TikTok is not likely. It becomes a problem.
MrBeast
The enthusiasm surrounding the purchase of Tiktok US has seen unconventional players enter the fray.
Social media superstar Mrbeast – real name Jimmy Donaldson – who has over 100 million Tiktok followers, has shown serious interest in buying the platform and posted several videos in which he claims to have had discussions with billionaires. I did.
In one video, an internet personality claimed he had Official offer is readyjokes that he might be the new Tiktok CEO.
media coverage He also mentioned a group of investors preparing to make a bid for Donaldson and TikTok.
On Thursday, Donaldson spokesman Matthew Hiltzik told CNBC that “several potential buyers are in ongoing discussions with Jimmy, but we do not have an exclusive agreement with any of them.” told.
“People Bid on TikTok”
Led by Project Liberty founder Frank McCourt, Canadian businessman and television personality Kevin O’Leary, “The People’s Bid for Tiktok” makes a $20 billion cash offer to buy Tiktok We are doing
O’Leary told CNBC last year that he wanted Possible trades do not include Tiktok’s original algorithm, so you buy the platform at a discount. The organization said it already has a replacement for the algorithm it uses for Tiktok US
Following Trump’s comments about a 50% stake in the platform, both McCourt and O’Leary told CNBC this week that they were interested in the TikTok deal and wanted to work with Trump to make it happen. spoke.
McCourt also told CNBC that he wants Tiktok to run a decentralized social networking protocol (DSNP) overseen by Project Liberty Institute, a nonprofit founded by billionaires.
Bidding benefits aside, many legal and technology experts told CNBC that Trump’s executive order delaying the TikTok ban conflicts with the Supreme Court’s previous ruling in favor of Pafaka and could face legal opposition. He said it was sexual.
O’Leary also told CNBC that no Tiktok deals will occur under current law after the Supreme Court upheld Tiktok’s impending ban. Protects Americans from hostile foreign control filing lawsor Pafaka, Sunday.
Beijing’s pending negotiations with Trump on trade with the United States are expected to play a deciding factor in whether the Chinese government will be allowed to fire the ordinance.
“It’s clear that TikTok is a big chip on the table in this game of high-stakes poker between the Trump administration and Beijing,” Wedosch said.
– CNBC’s Hayden Field contributed to this report
Correction: This copy has been updated to correct quote attributes.
