Trump TikTok Ban Extension Sees New Big-Name Buyers Emerge
President Donald Trump’s new executive order giving TikTok a 75-day extension to sell its US operations has sparked serious interest from a number of high-profile businessmen and celebrity influencers.
In yet another twist to the ongoing TikTok saga, President Donald Trump signed an executive order granting ByteDance, TikTok’s Chinese parent company, a 75-day extension to sell its US operations. The move has reignited interest among potential buyers, with tech moguls and investors lining up to stake their claims. Among the contenders are Tesla (NASDAQ: TSLA) CEO Elon Musk, Oracle (NYSE: ORCL) Chairman Larry Ellison, and YouTube sensation Jimmy Donaldson, better known as Mr. Beast.
The extension delays enforcement of the Foreign Adversary Controlled Applications Act, which mandates that TikTok must be sold to a non-Chinese entity or face an outright ban. The stakes are high, with TikTok boasting an estimated 170 million US users and a valuation ranging between $40 billion and $50 billion. But without its coveted algorithm, the app’s value could plummet.
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High-Profile Bidders Enter the Fray
Tech titans Elon Musk and Larry Ellison have emerged as frontrunners in the bidding war. Musk, who has extensive business ties in China, has yet to publicly comment on his potential involvement. However, Wedbush Securities analyst Dan Ives has hinted at Musk’s likelihood of success, citing his “ironclad relationship with Trump.”
Ellison, whose company Oracle already manages TikTok’s US user data, recently attended a press event with Trump and expressed his support for a potential acquisition.
Fueling speculation about Oracle’s intentions, Ellison remarked:
“Sounds like a good deal to me, Mr. President.”
Adding a twist to the narrative, YouTuber Mr. Beast has thrown his hat into the ring. In a TikTok video, he declared:
“TikTok, I’m on a private jet right now about to put in my official offer for this platform. I might become your guys’s new CEO. I’m super excited.”
Donaldson’s lawyer later confirmed that he is part of a consortium seeking to acquire the platform.
@mrbeastLet’s save TikTok from going down again 🫡♬ original sound – MrBeast
A Potential Joint Venture?
Trump has floated the idea of a joint ownership model, where ByteDance would retain a 50% stake while partnering with a US entity. This approach aims to address national security concerns while maintaining TikTok’s operational integrity.
In an analyst note on Wednesday, Ives noted:
“What happens to the algorithm? Will this be an outright sale or a JV/partnership structure? Our view is ByteDance is willing to play ball and look for a legitimate deal/JV partner to keep TikTok up and running while protecting its algorithm. From the beginning, we have only seen a few core potential bidders for the TikTok asset that would be ‘approved’ by Beijing.”
The algorithm, widely regarded as TikTok’s crown jewel, drives the platform’s unparalleled user engagement and has been a sticking point in negotiations.
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Political and Economic Implications
The TikTok ban has broader implications for US-China relations and the tech industry. Trump’s decision to extend the deadline was reportedly influenced by evolving diplomatic discussions.
Mao Ning, spokesperson for China’s Foreign Affairs Ministry, indicated a potential softening of China’s stance, stating:
“As for business operations and acquisitions, we firmly believe that these should be decided according to market principles and left to the discretion of the companies. If Chinese companies are involved, they should comply with China’s laws and regulations.”
Major US tech players are closely watching the situation. Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOGL), which control the app store ecosystems, have yet to restore TikTok’s availability. Their hesitation stems from legal uncertainties despite Trump’s assurances that companies complying with his executive order will not face penalties.
Meanwhile, Akamai Technologies (NASDAQ: AKAM) and Oracle, which play critical roles in hosting TikTok’s US user data, have already restored services. The companies’ proactive steps underscore their confidence in Trump’s extended timeline.
What’s Next for TikTok?
The clock is ticking for ByteDance to finalize a deal that satisfies all parties. General Atlantic CEO Bill Ford, a ByteDance board member, expressed optimism during an Axios event in Davos.
Ford commented:
“We’ll get on with it, as soon as maybe the end of the week in terms of negotiating what might work … The Chinese government, the US government and the company and the board all have to be involved in this conversation.”
However, significant challenges remain. Trump’s proposed joint ownership model could face legal hurdles, and the app’s absence from major app stores limits its reach. Analysts also warn that without its algorithm, TikTok’s appeal to advertisers and users could diminish significantly.
As the 75-day extension unfolds, all eyes are on the unfolding negotiations. Whether TikTok finds a new home under Musk, Ellison, or a consortium led by Mr. Beast, one thing is clear: the platform’s fate will shape the future of social media and international tech policy.
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