The Trump administration and tech company Oracle, led by billionaire Larry Ellison, are reportedly discussing a deal to take over TikTok, according to NPR. Oracle and other U.S. investors, possibly including Microsoft, might buy a majority stake in TikTok, while its Chinese owner, ByteDance, would keep a smaller share. NPR noted the deal is still uncertain, and Trump said he hasn’t spoken to Ellison about it.

Perplexity AI has also made an offer to merge with TikTok and New Capital Partners, which would allow most of ByteDance’s investors to keep their shares, a source told CNBC.

Bloomberg reported that Chinese officials have considered selling TikTok’s U.S. operations to Tesla CEO Elon Musk, as China works on its relationship with Trump. However, ByteDance dismissed the report, calling it “pure fiction.”

Meanwhile, YouTuber MrBeast (Jimmy Donaldson) joked on X that he would “buy TikTok to stop it from being banned.” He later said several billionaires reached out to him, and he might explore the idea.

Project Liberty, led by billionaire Frank McCourt, proposed buying TikTok’s U.S. assets on January 9. Supported by “Shark Tank” investor Kevin O’Leary, Guggenheim Securities, and others, the group plans to change TikTok to collect less user data.

O’Leary told Fox News he offered $20 billion for TikTok, explaining the Supreme Court supported a law banning the app in the U.S., allowing it to be sold to an “American group.”

A former TikTok employee told Forbes that Amazon might buy TikTok. Amazon, the app’s third-largest advertiser, recently partnered with TikTok to let users shop for Amazon products directly on the platform.

In March 2024, the video platform Rumble expressed interest in buying TikTok and said it was open to teaming up with others to make the purchase. However, Rumble and its CEO, Chris Pavlovski, didn’t share details about their offer.

Bobby Kotick, the former CEO of Activision Blizzard, is also interested in buying TikTok. According to the Wall Street Journal, he has discussed financing the deal with OpenAI CEO Sam Altman and others, though Kotick hasn’t publicly commented on the matter.

Former Treasury Secretary Steve Mnuchin said in March 2024 that he planned to create a team to buy TikTok. By May, he told Bloomberg he had spoken with many tech companies about purchasing the app and building a new version of its algorithm, which ByteDance has said would not be included in any sale.

Elon Musk is the richest person in the world, with an estimated net worth of $428.8 billion. Larry Ellison is the third-richest, with $228.1 billion, while Frank McCourt, the former owner of the Los Angeles Dodgers, has a net worth of $1.4 billion.

Why Might TikTok Be Sold?

A law passed by Congress and signed by former President Joe Biden last year bans TikTok in the U.S. unless its parent company, ByteDance, sells the app. This decision was based on national security concerns over ByteDance’s connections to China. The ban started on January 19, causing TikTok to go offline for more than 12 hours, but the app returned after former President Trump promised to extend the deadline for the sale.

The ban is now set to take effect in about 75 days under an executive order from Trump, who wants TikTok to be owned by a partnership of ByteDance and new U.S.-based owners. TikTok has opposed this law, arguing that selling its U.S. operations is not realistic or possible from a business, technology, or legal standpoint.

Which Companies Have Tried to Buy TikTok?

Microsoft tried to buy TikTok from its owner, ByteDance, in August 2020. Microsoft’s CEO, Satya Nadella, called it “the strangest thing I’ve ever worked on.” The deal was close to happening but fell apart. In September 2020, Oracle and Walmart also announced a deal to buy TikTok. However, this deal didn’t go through because the Biden administration stopped it, citing concerns about the app’s security.

How Much Is TikTok Worth?

TikTok is estimated to be worth about $100 billion, including its algorithm, according to Dan Ives, an analyst from Wedbush Securities. He also suggested that ByteDance could sell TikTok’s U.S. operations for $40 billion to $50 billion.

Background

Some people criticize TikTok, saying it might collect data from American users or spread government propaganda. Forbes reported that TikTok was accused of spying on journalists, showing Chinese propaganda criticizing U.S. politicians, mishandling user data (like financial info, Social Security numbers, and personal contacts), and tracking certain “sensitive” words. TikTok and its parent company, ByteDance, deny these claims and say they are not connected to the Chinese government. They insist they have never shared user data with officials and that data from U.S. users is stored in the United States.

Published: 27th January 2025

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