Musk, MrBeast, Larry Ellison - Who might buy TikTok?
2025-01-25
Category: economic

Jimmy Donaldson - aka MrBeast - was jubilant as he told his tens of millions of TikTok followers about his bid to buy the platform."I might become you guys' new CEO! I'm super excited!" Donaldson said from a private jet. He then proceeded to pay $10,000 to five random new followers.The internet creator's post has been viewed more than 73 million times since Monday. Donaldson said he could not share details about his bid, but promised: "Just know, it's gonna be crazy."Donaldson is one of multiple suitors who have expressed interest in purchasing TikTok, the wildly popular social media platform that's become the subject of a fast-moving political drama in the United States.Last year, then-President Joe Biden signed a law that gave TikTok's China-based parent company ByteDance until 19 January to sell the platform or face a ban in the United States.
The legislation addressed concerns about TikTok's links to the Chinese government and worries about the app being a national security risk.President Donald Trump has floated the possibility of a joint venture."I would like the United States to have a 50% ownership position," he said in a Truth Social post on Sunday. "By doing this, we save TikTok, keep it in good hands and allow it to [stay up]."Trump has since signed an executive order that allows the app to stay operational for another 75 days. Earlier this month, Bloomberg reported that China was considering a TikTok sale to Elon Musk, the world's richest man and a close ally of President Trump,  who already owns the social media platform X.Musk himself wrote on X this week that while he has long been against a TikTok ban, "the current situation where TikTok is allowed to operate in America, but X is not allowed to operate in China is unbalanced. Something needs to change".At a news conference Tuesday, Trump was asked by a reporter if he would be open to Musk buying the platform. "I would be if he wanted to buy it, yes," the president replied."I'd like Larry to buy it, too," Trump added, referring to Oracle chairman Larry Ellison, a long-time Trump supporter who was on stage with him for a separate announcement.Oracle is one of TikTok's main server providers, managing many of the data centres where billions of the platform's videos are stored.Last year, Oracle warned that a TikTok ban could hurt its business. The cloud computing giant was also a leading contender to buy the social media platform in 2020, back when Trump was trying to ban it.Billionaire investor Frank McCourt has also expressed interest in TikTok, and has been doing media interviews about the prospect for several months.McCourt has said he wants TikTok to run on technology overseen by the Project Liberty Institute, which he founded. He has been critical of data collection practices of social media companies.Project Liberty is bidding for TikTok without its proprietary algorithm. McCourt told CNBC this week that Project Liberty is "not interested in the algorithm or the Chinese technology" even as he acknowledged that the platform is "worth less" without it.Ultimately, President Trump is likely to have a major role in selecting a US buyer of TikTok."It's going to be a winner that's likely to be politically sympathetic to President Donald Trump," said Professor Anupam Chander, of law school Georgetown Law.Prof Chander said the 50-50 joint ownership model does not comport with the law's requirements, which might prompt Trump to pressure Congress into revising the law.For now, the platform's future remains in limbo. Prof Chander said the Biden administration made an "unforced error" by allowing the law to give the president outsized control over who owns TikTok."It was a terrible idea to put the future of a massive information platform into this political maelstrom," Prof Chander said.