In this illustration of January 19, 2025, a 3D printed miniature model by the designated US President Donald Trump and the Tikok logo can be seen.
Given Ruvic | Reuters
President Donald Trump wants a US investor to take on a major participation in Bytedance. Several parties are in dispute, even if potential buyers are confronted with a variety of legal hurdles and barriers.
After entering Restore TikTok in the USA And the delay of a law that would effectively prohibit the app is looking for paths to keep the popular platform alive.
He proposed to an American shareholder to buy the company and then sell a 50 % share to the US government that the app will operate together with the private party.
Trump card allegedly said on Saturday that he was negotiating with several people about buying Tikkok and that he would probably decide on the future in the next 30 days.
So who are the likely candidates for one of the most popular apps in the USA?
Elon Musk
Trump has already referred to several major investors in his closer circle as an acceptable buyer, including Tesla and SpaceX owners Elon Musk.
The richest person in the world leads Trump’s new Ministry of Government Efficiency, maintains close business relationships with China and has said against it To the TikTok ban.
At the beginning of the month, citing anonymous sources, Bloomberg reported that the Chinese government is considering a plan to have TikTok’s US activities taken over. This was followed by a report by Wall Street Journal, in which it was claimed that it was Tiktok’s CEO Ask Musk for advice Before Trump’s inauguration.
CNBC could not achieve Musk for a statement.
“Elon Musk is still in the foreground as a potential bidder for Tikkok, which probably includes some technology partners/external investors to achieve a deal,” said the financial services company Wedbush Securities on Wednesday in a research note.
“Musk would be handpicked by Beijing and his iron relationship with Trump would make this a very logical decision,” the note continues.
Nat Schindler, analyst at Scotiabank, also found that the takeover of Twitter by Musk had demonstrated his interest in global social media platforms.
However, Paul Triolo from the Albright Stone Group also sees some potential obstacles for the tech-tycoon.
“Musk is already under fire because he has X and has the impression that he uses it to promote certain political ideas, and any participation in TikKOK could result in additional criticism and possibly antitrust law,” he said.
Larry Ellison
Trump also said that he would like to see it oracle Chairman Larry Ellison buys the platform.
Ellison, A long-time Trump supporter, stood next to the president press conference On his Investments in the AI infrastructure Plans on Tuesday, when Trump was asked about a possible Tikok deal.
“What I think about saying someone is: Buy it and give half to the United States of America. Half and we give them the approval, ”said Trump, before he turned to Ellison and asked if the deal sounds reasonable.
“Sounds good business for me, Mr. President,” answered Ellison.
Ellison and his company are currently the focus of the TikK dilemma and act as a cloud infrastructure provider for bytedance in the USA
In view of the existing relationship with Tiktok, Oracle was “invested directly in Tiktok’s success in the region,” said Schindler from Scotiabank.
Ellison had also offered for Tiktok WalmartIn 2020, when Trump first pushed for a ban on the platform. None of the companies reacted to CNBC for a comment.
Trump had approved The Walmart-Oracle deal, which would have led to the technology and retail giants that would have teamed up to take over the video sharing app in the USA and thus avoid closure. The trump government’s attempt to ban Tikok in the United States failed, but failed due to legal challenges.
Ellison later Join an investor group This helped to buy the social media platform Twitter, now known as X, in 2022.
“(We believe) Oracle/Ellison could play a crucial role in every deal in view of her important technology partnership with Tikok and his appearance in the White House with Project Stargate,” said Wedbush.
Wedbus also added that a number of Tikok bids expected from a variety of players in the coming weeks, especially Musk and Ellison.
According to A Report of the National Public Radio On Saturday, the Trump administration is working on a plan to save Tikkok, in which Oracle and a group of external investors would actually take control of the company’s global activities.
Perplexed AI
The search engine startup based in California Perplexity AI for artificial intelligence An offer submitted For TikTok on Bytedance on January 18, since the company is trying to create a new merged unit that combined Perplexity, TikTok and new capital partners, as CNBC learned.
After Trump’s comments on a Tikok deal structure, the AI company announced revised his merger proposal According to a proposal document viewed by CNBC, the US government should also be allowed to have up to 50 % of the new company in the event of a future IPO.
The document suggests that bytedance Tikok us without its recommendation algorithm offers in exchange for the company’s existing investors receive shares in the merged company.
According to reports, the deal would bring more videos to perplexity – most recently worth, for example 9 billion dollars -Since it is increasingly gaining interest in investors in the course of the generative AI boom and competing with Openaai and Google.
Big players, a lot of money
Experts pointed out that several other parties were probably interested in a possible deal for Tikok, and added that the entry barriers were high.
In view of the financial risks of a Tikok deal, according to Triolo from the Albright Stone Group, it is unlikely that a rogue investor will start and buy the platform cheaply.
“Although it is difficult to create a current evaluation of TikTok, it should be in the order of $ 40 to 80 billion, which means that everyone who decides to get started must have a lot of money,” said he.
He added that the potential applicants will probably include some of the largest social media and technology players of America, such as z Meta And GoogleIn addition to Musks X.
Meta and Google did not react immediately to a CNBC request.
Sarah Kreps, director of the Tech Policy Institute at Cornell University, warned that a significant participation of actors such as Meta, Google and Musk could raise anti -antitrust law questions.
Scotiabank analyst Nat Schindler pointed out that there are also a number of other actors, including existing investors Black rockCoatue and General Atlantic who are owners A big chunk the Tikkok parent company. According to him, some of these investors are likely to take part in selling the US platform by investing in the new company.
“Other large VCS, hedge funds and asset managers from tigers to Fidelity would probably also show interest in a rapidly growing global platform with such a large viewer base,” said Schindler and added that the search for investors who own part of Tikok The case is a problem.
Mrbeast
The enthusiasm for the purchase of Tikok Us has also led to some unconventional actors have entered the fight.
The social media superstar Mrbeast-with a bourgeois name Jimmy Donaldson-, who has more than 100 million Tikok followers, posted several videos in which he had serious interest in the purchase of the platform and claimed that he had had discussions with billionaires.
In a video, internet personality claimed that he had done it an official offer readyAnd joked that he could be the new Tikok CEO.
Media reports Have also mentioned Donaldson and a group of investors who are preparing for an offer for Tiktok.
On Thursday, Matthew Hiltzik, a spokesman for Donaldson, told CNBC: “Several potential buyers are in ongoing talks with Jimmy, but he doesn’t have any exclusive agreements with any of them.”
“The offer of the people for Tiktok”
Under the direction of Project Liberty founder Frank McCourt and with the participation of the Canadian businessman and TV stars Kevin O’Leary, “The People’s Bid for Tiktok” has made a 20 billion dollar bar offer to buy TikKok.
O’Leary told CNBC last year that he wanted it Buy the platform with a discount Since each possible deal will not contain the original algorithm from Tiktok. The organization said it already had a replacement for the algorithm, which is to be used for Tikkok us
Following Trump’s statements about a 50 percent participation in the platform, both McCourt And O’Leary CNBC announced this week that they were interested in a Tikok deal and hoped to work with Trump to implement it.
McCourt also said CNBC that he wants Tiktok to operate a decentralized social networking protocol (DSNP), which is monitored by the Project Liberty Institute, a non-profit organization founded by the billionaire.
Apart from the interest of the bidder, several legal and technology experts have told CNBC that Trump’s arrangement for postponing the Tikok ban contradicts the earlier arrangement of the Supreme Court Decision to maintain the Pafaca And could encounter legal resistance.
O’Leary also announced CNBC on Monday that a Tikok deal could not come about According to applicable lawAfter the Supreme Court had confirmed an upcoming ban from Tiktok Law for the protection of Americans against applications controlled by foreign opponentsOr Pafaca, on Sunday.
It is expected that Beijing and the upcoming negotiations with Trump on trade with the United States will also play a decisive factor in whether the Chinese government would allow to sell bytedance.
“In this high-risk poker game between the Trump administration and Beijing it is clear that Tiktok plays a major role,” said Wedush.
– Hayden Field from CNBC contributed to this report
Correction: This copy has been updated to correct a quotation.
