On January 22, 2025, US President Trump expressed his willingness to see billionaire supporters like Elon Musk or Larry Ellison, the chairman of Oracle Corp., acquire the social video app TikTok and have it become part of a joint venture with the US government.
During an event at the White House on Tuesday, January 21, Trump said, “I have the authority to make a deal. I would say, do it, give half of it to America, half of it to you, we get a license, it’s a great company, they’re a great partnership.”
Although TikTok was temporarily taken down over the weekend, Trump signed an executive order on January 20, his first day in office, extending the deadline for sale by 75 days.
It’s currently unclear if Trump has the power to extend the deadline, but that may ultimately not be crucial.
ByteDance Ltd., TikTok’s Chinese parent company, has publicly rejected selling TikTok, but potential buyers are hoping that a ruling from the Supreme Court and the temporary shutdown of TikTok can prompt them to reconsider.
Trump stated, “This asset is either worthless or worth billions. It depends entirely on whether the US grants permission for the acquisition.”
This prospect has attracted a lineup of potential bidders. An assembly of American investors, led by tech entrepreneur Jesse Tinsley, which includes internet sensation and highest-earning content creator MrBeast, announced their bid on Tuesday.
Former owner of the Los Angeles Dodgers, billionaire Frank McCourt, and Shark Tank investor Kevin O’Leary formally made a bid to acquire TikTok earlier this month. O’Leary has met with Trump at Mar-a-Lago to discuss the acquisition, while McCourt explicitly stated his willingness to purchase TikTok without needing its coveted content algorithm. ByteDance and the Chinese government have both stated that the algorithm will not be sold.
Amazon and Oracle Corp. are both involved in business dealings with TikTok and are seen as potential acquirers. Oracle Corp. helped restore TikTok’s application on Sunday, despite potential fines for doing so, after Trump assured there would be no enforced legal actions.
On Tuesday, Ellison announced at the White House that he will establish a new artificial intelligence joint venture with Softbank Group Corp. and OpenAI LLC.
Towards the end of his speech, Trump hinted that he might download TikTok on his phone.
He said, “I think I may just put it on, I think I might just go ahead and download it now. And, by the way, we got the vote of the youth again. I think I won through TikTok, so I have a special feeling for TikTok.”
On his inauguration day, Trump did not impose tariffs on Chinese goods as anticipated. However, he has indicated that the tariffs on China could be linked to the TikTok acquisition. If Beijing does not approve selling TikTok, tariffs on China could potentially go up to 100%.
In essence, US tariffs on China may depend on whether Beijing is willing to sell TikTok ownership to the US.
When signing the executive order on Monday, Trump stated that in the long term, for TikTok to operate in the US, American companies should have the right to purchase half of TikTok’s shares. If Beijing rejects this deal, it would be deemed “hostile action,” allowing him to impose tariffs on China, up to 100%.
He also mentioned that if the TikTok deal doesn’t get approved, the app would become worthless.
He said, “We want to make a deal with TikTok, and it’s a great deal… I think ultimately they will be approved, because we may be taking some tariffs on China.”
Chairman of the House Select Committee on the CCP, John Moolenaar, from Michigan, wrote on the Capitol Hill Gazette on January 21 that TikTok is trying to blame the US government for being shut down in the US, which is deceptive because Congress has given TikTok a direct path to continue operating by cutting ties with the Chinese government. Once this is done, the restrictions on TikTok under US law will be lifted immediately.
Moolenaar explained that despite American buyers lining up to make offers, ByteDance refuses to discuss the possibility of selling, seeming to prefer watching its $50 billion US business go up in smoke rather than comply with a simple request to detach from US law. This behavior stands in stark contrast to the rational response of any profit-seeking private company. It highlights the Chinese Communist Party’s determination to avoid losing control over TikTok at all costs. For the CCP, TikTok is the most effective platform for monitoring and manipulating American citizens.
(This article references reporting from Bloomberg News)