Trump open to Elon Musk or Larry Ellison buying TikTok

After delaying the ban on TikTok President Trump has said he would be open to Tesla CEO Elon Musk or Oracle chairman Larry Ellison buying TikTok. However, he would want either of them as part of a joint venture with the U.S. government.

This conversation came about after POTUS was asked by a reporter at the White House if he was in favor of Musk buying TikTok. He responded, “I would be if he wanted to buy it.”  He added, “I’d like Larry to buy it too.” Larry Ellison was standing next to him at that time.

In addition, the president indicated that he was considering an arrangement in which the US would provide a “permit” in exchange for half of TikTok. President Trump stated, “I have the right to make a deal […] So 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, and they’ll have a great partner.”

In response, the Oracle chairman said, “It sounds like a good deal to me, Mr. President.”

This is not the first time this conversation has come up. Previously, Trump proposed a 50-50 “joint venture” in which the US would receive half of the TikTok revenue. However, TikTok’s parent business is Chinese, and any such purchase would require China’s approval.

Is a joint venture going to work?

According to constitutional law experts, an equal partnership is unlikely to satisfy the law’s requirements. This is even if the US were to acquire a controlling interest.

Nicholas Creel, a business law professor, argued that TikTok should be banned as long as foreign people from adversarial countries possess 20% more of the company. In addition, banning is necessary if adversaries have significant influence over access to its data or algorithm.

However, Jonathan Entin, professor emeritus of law at Case Western Reserve University, said, “I don’t know necessarily that Trump has thought this all the way through.” Still, he said that there may be several financial rewards for Trump and any US corporations that wish to acquire a portion of the popular platform.

Jonathan Entin also suggested that Trump may have some flexibility in turning his concept into a reality due to the limited number of parties that could legally dispute a 50-50 venture.

He clarified that Congress and TikTok competitors, including Meta’s Instagram and X, would be parties with standing, or the right to challenge. Still, “Usually, you’ve got to have a party that is legally harmed.” Therefore, who is going to challenge this?

In the same light, Jared Carter, a constitutional law expert and professor at Vermont Law School, predicted that challenges would ultimately arise if a 50-50 agreement were reached between the US and ByteDance.

According to Jared Carter’s interpretation of the law, divestiture to an American company is mandatory. He also noted that a 50-50 split would go against the law’s spirit, which mandates divestiture as a result of national security concerns.

Notably, President Trump said, “Whether you like TikTok or not, we’re going to make a lot of money.” This, therefore, seems very important to the government. In fact, on Monday, the president threatened to introduce tariffs on China if it does not authorize a potential buyer for TikTok’s US assets. 

Moreover, at a rally, he mentioned that ByteDance, the parent company of TikTok, would transfer half of the company to him in exchange for allowing it to continue operating.

Dan Ives, the global director of tech research at Wedbush Securities, could be right to say that TikTok is “a chip on the poker table.” This is in a much broader set of negotiations with China regarding the potential for tariffs.

I have been against a TikTok ban for a long time, because it goes against freedom of speech.

That said, the current situation where TikTok is allowed to operate in America, but 𝕏 is not allowed to operate in China is unbalanced.

Something needs to change. https://t.co/YVu2hkZEVZ

— Elon Musk (@elonmusk) January 19, 2025

On the other hand, Musk does not support the TikTok ban. He said on X,  “I have been against a TikTok ban for a long time because it goes against freedom of speech. That said, the current situation where TikTok is allowed to operate in America, but X is not allowed to operate in China is unbalanced. Something needs to change.”

Does the TikTok ban still stand?

On Monday, the president issued an executive order that suspends the ban’s enforcement for the next 75 days. This was in order to facilitate the acquisition of a buyer.

However, Trump’s order does not overturn the ban. Instead, it tells the US attorney general not to enforce the law for now. This is something experts had expected would be his first move. For now, one thing stands, the order creates a situation where the president is directly opposing a ruling made by the Supreme Court.

Technically, Trump could permit the law to remain in effect but instruct the Department of Justice (DoJ) to continue to disregard it, even after the 75-day period has elapsed.

The law would remain in effect, but it would be essentially redundant, as the government would be informing Apple and Google that they would not be penalized for continuing to permit the download of TikTok onto their devices.

In light of these circumstances, it is uncertain whether the companies would continue to provide the application.

Still, the Protecting Americans from Foreign Adversary Controlled Applications Act prohibits the nationwide use of TikTok’s application. This is unless its Chinese-owned parent company, ByteDance, executes a “qualified divestiture.” What does that mean? ByteDance cuts its direct connection to TikTok, allowing the new company to operate without ties to any ‘foreign hostile organizations.’

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