President Donald Trump expressed his support for tech moguls Elon Musk and Larry Ellison potentially acquiring TikTok, the popular social media platform currently owned by Chinese company ByteDance. Speaking at a press conference in Washington D.C., Trump outlined a possible framework for a deal that could safeguard TikTok’s operations in the United States.
“I would be if he wanted to buy it,” Trump responded when asked about Musk’s potential interest in TikTok. The president’s remarks came during a media briefing at the White House, where Oracle chairman Larry Ellison stood by his side. Trump further added, “I’d like Larry to buy it too,” signaling his openness to multiple American investors stepping in.
The proposed arrangement includes the U.S. government issuing a “permit” in exchange for a 50% stake in TikTok. “I have the right to make a deal,” Trump asserted, suggesting that the U.S. could facilitate the transaction by becoming a partner. “Buy it and give half to the United States of America, half, and we’ll give you the permit,” he said, framing it as a win-win partnership.
Ellison appeared receptive to the idea, responding, “It sounds like a good deal to me, Mr. President.”
This proposal adds clarity to previous hints by Trump that a joint venture could be a way forward. However, the plan has sparked legal concerns. Experts warn that such an arrangement might not meet the legal requirements to lift the existing ban on TikTok, imposed just before Trump took office.
Jonathan Entin, professor emeritus of law at Case Western Reserve University, voiced skepticism about the feasibility of the proposed joint venture. “I don’t know necessarily that Trump has thought this all the way through,” Entin said, highlighting the complexity of disentangling TikTok from its Chinese parent company.
Financially, the stakes are high. Dan Ives, global head of tech research at Wedbush Securities, referred to TikTok as a “chip on the poker table” in broader U.S.-China negotiations, particularly concerning tariffs. Trump himself suggested the potential economic benefits, hinting at substantial financial gains for the U.S.
The president’s remarks have stirred interest among potential bidders. Elon Musk, owner of X (formerly Twitter), and Larry Ellison’s Oracle have been floated as key contenders. Musk recently expressed his opposition to a TikTok ban on X, advocating for a more balanced approach to social media regulations between the U.S. and China.
“I have been against a TikTok ban for a long time because it goes against freedom of speech,” Musk posted. “That said, the current situation where TikTok operates in America, but X cannot operate in China is unbalanced. Something needs to change.”
Oracle, already hosting TikTok’s data, could leverage its existing infrastructure to secure a more significant role in TikTok’s U.S. operations.
Despite the enthusiasm from potential buyers and the president, legal experts caution that a joint venture might not be sufficient to comply with U.S. law. The Protecting Americans from Foreign Adversary Controlled Applications Act mandates a complete divestiture from foreign control to address national security concerns.
“The law requires divestiture to an American company,” noted Jared Carter, a constitutional law professor at Vermont Law School. A 50-50 split, he argued, would still leave significant foreign influence, contrary to the law’s intent.
Nicholas Creel, a business law professor at Georgia College & State University, pointed out that as long as foreign nationals from adversary countries retain significant control or influence over TikTok, the app remains at risk of being banned.
The legal landscape could become contentious as the executive order delaying TikTok’s ban for 75 days invites potential lawsuits. Critics argue that Trump may have overstepped his authority by issuing this order, which contravenes the statute requiring the U.S. Attorney General to enforce the ban.
“There’s a strong likelihood that the order could be struck down,” Creel remarked, emphasizing the strict legal framework governing the situation. Nonetheless, Trump’s maneuvering could create a narrow path for his proposal to move forward, depending on who might have the standing to challenge it.