Inside Trump’s Strategy of Making TikTok’s US Sale a Bidding Match
US President Donald Trump is not hesitant about making the TikTok US sale a public bidding affair. When asked about the sale, the President floated big names in the tech world as possible buyers of TikTok’s US operations, Yahoo Finance reported.
Swift Deal
The fate of the popular video-streaming company in the US continues to hang in the balance. But there are major players lining up to take part in what could be a multi-billion-dollar deal. Such a deal will enable the platform to circumvent the ban imposed by the divest-or-ban law. Trump says he wants a deal finalized in 30 days.
“I like bidding wars because you make your best deals,” the President said.
Trump signed an executive order on day one in office to give ByteDance, the company that owns TikTok until April 4 to fix the ownership issue. The US President said he wants a deal done in 30 days. An executive order he signed on his first day in office actually gives TikTok’s Chinese parent company, ByteDance, until April 4 to figure something out.
Big Names in Tech
Trump’s TikTok involvement has seen him float big names as possible buyers. They include Tesla CEO Elon Musk, Oracle Chairman Larry Ellison, and Microsoft’s Satya Nadella. It’s still unclear whether any of these tech leaders have had actual discussions on the issue.
Microsoft is not a stranger to the TikTok bidding process. In 2020, the Windows maker along with Walmart, attempted to acquire TikTok’s US operations during Trump’s first term. Microsoft CEO, Satya Nadella described this attempt as the strangest thing he had ever worked on after the deal stalled due to federal requirements. With the clock ticking, it remains to be seen whether Microsoft will revisit its previous bid.
Last week, the President hinted at Oracle founder Larry Ellison playing a role in the TikTok sale as he announced the company’s investment in AI infrastructure. The Trump administration is reportedly developing a plan to shift TikTok control to Oracle. In such a scenario, TikTok parent company, ByteDance would have a minority stake in the company and Oracle would control the app’s data collection and algorithm. Oracle currently stores videos and other content for TikTok in its data centers. Trump has however denied discussing the issue with Oracle.
“No, not with Oracle. Numerous people are talking to me, very substantial people, about buying it and I will make that decision probably over the next 30 days,” he said.
Perplexity AI is among other potential bidders that Trump is yet to mention. The AI startup is backed by big tech heavy weights including Nvidia and Amazon founder Jeff Bezos. Perplexity AI reportedly submitted a proposal that would see it merge with TikTok’s US business to ByteDance this past weekend. The startup would give 50% of the new company’s ownership to the US government after an IPO.
The Musk Factor
One of the big names floated by Trump is Elon Musk. The Tesla CEO and X owner is known for making bold moves in the tech world. Musk’s involvement in the TikTok deal could be a game-changer due to his opposition to the TikTok ban.
“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,” Musk posted on X.
Trump has shown interest in Musk’s potential bid. When asked whether he would approve of Musk’s TikTok purchase, his response was positive. Musk is yet to comment on the matter in detail, but antitrust experts believe that he could face fewer legal obstacles compared to other potential buyers.
TikTok and X serve different user bases, which means a Musk-TikTok deal would attract less scrutiny from US regulators. Musk’s close relationship with the current administration could also help make the process smooth. Musk supported Trump’s reelection campaign and is now leading the newly created Department of Government Efficiency (DOGE). Musk’s global business ties include Tesla’s strong presence in China where he sells lots of EVs in the Asian country.
