Former U.S. President Donald Trump has clarified reports regarding the potential sale of TikTok, denying any discussions with Oracle co-founder Larry Ellison but confirming that his team has engaged with multiple parties about the app’s future ownership.
This follows his earlier move to delay a ban on TikTok as part of his administration’s scrutiny of Chinese-owned technology.
Trump Clarifies Oracle’s Role in TikTok Deal
During a media briefing on Saturday, Donald Trump stated, “I have spoken to many people about TikTok,” but firmly denied any direct conversation with Larry Ellison, as mentioned in a report by Forbes.
This rebuttal came after NPR reported that Oracle is in negotiations to acquire TikTok, including control over its algorithm, data collection, and software updates.
The NPR report suggested that Oracle, along with a group of investors, was part of a plan that would allow TikTok’s parent company, ByteDance, to retain a minority stake while Oracle would oversee the platform’s operations.
However, Trump dismissed these claims, adding that a final decision on the app’s sale would be made within the next 90 days.
Potential Buyers Emerge Amid Uncertainty
As the fate of TikTok hangs in the balance, several potential buyers have surfaced.
Among them, Microsoft remains a strong contender, while reports also highlight interest from Perplexity AI and Project Liberty, an internet advocacy group.
Interestingly, Chinese officials have reportedly considered Tesla CEO Elon Musk as a prospective buyer, according to Bloomberg.
Additionally, former Activision Blizzard CEO Bobby Kotick is said to have explored financing options for a deal, potentially partnering with OpenAI CEO Sam Altman.
Despite the growing list of suitors, ByteDance’s estimated valuation of TikTok at a staggering $200 billion could prove to be a significant hurdle for interested parties.
Broader Implications of the Sale
In 2020, Trump signed an executive order mandating TikTok’s sale to a non-Chinese company, citing national security concerns over data privacy.
Although the deadline for the sale was extended by 75 days, TikTok’s ownership remains a contentious issue.
The former president has floated the idea of U.S. stakeholders acquiring a 50% share in TikTok, though the specifics of such an arrangement remain unclear.
Moreover, the bipartisan law that mandates ByteDance’s divestiture requires congressional approval, leaving the final deal in legal limbo.
Challenges Ahead for a TikTok Sale
Despite ongoing discussions, significant obstacles remain. Analysts point to concerns over how any deal would fully eliminate ByteDance’s influence on TikTok, particularly regarding its data and algorithm.
Sarah Kreps, a Brookings Institution fellow, expressed skepticism, suggesting it would be difficult to entirely remove Chinese control.
Chinese regulators, who have previously opposed TikTok’s divestiture, now appear more open to the idea, signaling a potential shift in stance. However, their approval will be crucial to finalizing any agreement.
FAQs
How much is TikTok going to be sold for?
Potential buyers may need to invest between $40 billion and $50 billion solely for TikTok’s U.S. operations, according to an estimate by CFRA Research Senior Vice President Angelo Zino.
Who is the CEO of TikTok?
Shou Zi Chew, a Singaporean business executive, has served as the Chief Executive Officer (CEO) of TikTok, the popular online video platform owned by the Chinese company ByteDance, since 2021.
