Trump is looking for potential TikTok buyers – perhaps who are the competitors?

President Donald Trump wants US investors to take a big stake in Bytedance’s TikTok. Several parties are in contention, even as potential buyers face a litany of legal hurdles and barriers.

After intervening to restore TikTok in the US and delay legislation that would effectively ban the app, Trump is looking for a long-term path to keeping the popular platform afloat.

He submitted a proposal for American interests to purchase the company and sell a 50% stake to the US government.

So who are the candidates for one of the most popular apps in the US?

Trump has already flagged several major investors within his inner circle as acceptable buyers, one of which is Tesla and SpaceX owner Elon Musk.

The world’s richest man is leading the efficiency of Trump’s new government, has close business ties with China, and has voiced opposition to the TikTok ban.

Bloomberg reported earlier this month that the Chinese government is considering a plan for Musk to acquire TikTok’s U.S. operations, citing unnamed sources. It followed a report in The Wall Street Journal that claimed that Tiktok’s CEO sought advice from Musk ahead of Trump’s inauguration.

CNBC was unable to reach Musk for comment.

“Elon Musk remains front and center as a potential bidder for TikTok, which could include tech partners/outside investors to get the deal done,” Wedbush said Wednesday. I mentioned it in my research notes.

“Musk was hand-selected by Beijing and his iron-clad relationship with Trump would make this a very logical choice in our view,” the memo added.

Scotiabank analyst Nat Schindler also noted that Musk’s acquisition of Twitter shows interest in global social media platforms. But he also sees potential obstacles for the tech tycoon.

“Since Musk already owns “It could draw scrutiny of prohibition laws,” Schindler said.

Trump also said he likes to watch oracle Chairman Larry Ellison buys the platform.

Ellison, a longtime supporter of Trump, stood by the president at a press conference on Tuesday’s AI infrastructure investment plan.

“What I tell people is buy it and give half to the United States of America.

“Sounds like a lot to the president,” Ellison replied.

Ellison and his company are currently at the center of the TikTok dilemma, operating as a cloud infrastructure provider due to regulations in the US

Scotiabank’s Schindler said given its existing relationship with Tiktok, it is “directly invested in Tiktok’s success in the region.”

Ellison bid on TikTok walmartin 2020, when Trump first called for a ban on the platform. Neither company responded to CNBC’s requests for comment.

Trump had approved the Walmart-Oracle deal in principle. This would have seen the tech and retail giant’s partners take over the US video-sharing app and avoided a shutdown. However, the Trump administration’s attempt to ban TikTok in the United States has fallen in the face of legal challenges.

Ellison later joined the group of investors that helped Elon Musk buy the social media platform Twitter, now known as X, in 2022.

“(We believe) that Oracle/Ellison could play a pivotal role in any deal given its major technology partnership with Tiktok and his appearance in the White House with Project Stargate.” Wedbush says.

Wedbush added that it expects to see Tiktok bids from a number of players over the coming weeks, with Musk and Ellison leading the pack.

In addition to Musk and Ellison, experts flagged several other parties likely to be interested in a potential Tiktok deal, adding that the barriers to entry are high.

Given the financial stakes in the Tiktok deal, it’s unlikely some rogue investors will rush to buy the platform on the cheap, Paul Triolo of Albright Stone Group told CNBC.

“Tiktok’s latest valuation is difficult, but could be on the order of $40-800 billion, meaning anyone who decides to jump in will need to be ready with some serious money,” he said. said.

He added that potential suitors would likely include America’s largest social media and technology players. Meta and googlein addition to the x in the mask.

Meta and Google did not immediately respond to CNBC’s inquiries.

However, Sarah Kreps, director of Cornell University’s Tech Policy Institute, warned that players such as Meta, Google, and Musk could acquire significant stakes in TikTok.

Scotiabank analyst Nat Schindler pointed out that there are also many other players, including existing investors black rockCotue, and General Atlantic, which owns the majority of Tiktok’s parent company. According to him, some of these investors may participate in the sale of the US platform by investing in new entities.

“Other large VCs, hedge funds, and asset managers from Tiger to Fidelity will also be interested in a rapidly growing global platform with such a huge audience base,” Schindler said. He added that finding an investor to own a piece of TikTok is not likely. It becomes a problem.

The enthusiasm surrounding the purchase of Tiktok US has seen unconventional players enter the fray.

Social media superstar Mrbeast – real name Jimmy Donaldson – who has over 100 million Tiktok followers, has shown serious interest in buying the platform and posted several videos in which he claims to have had discussions with billionaires. I did.

In one video, the internet personality claims he is ready for an official offer and jokes that he might be the new Tiktok CEO.

Media reports also mention Donaldson and a group of investors preparing to bid on TikTok.

On Thursday, Donaldson spokesman Matthew Hiltzik told CNBC that “several potential buyers are in ongoing discussions with Jimmy, but we do not have an exclusive agreement with any of them.” told.

Led by Project Liberty founder Frank McCourt, Canadian businessman and television personality Kevin O’Leary, “The People’s Bid for Tiktok” makes a $20 billion cash offer to buy Tiktok We are doing

O’Leary told CNBC last year that he wanted to buy the platform at a discount because the potential deal would not include Tiktok’s original algorithm. The organization said it already has a replacement for the algorithm it uses for Tiktok US

Following Trump’s comments about a 50% stake in the platform, both McCourt and O’Leary told CNBC this week that they were interested in the TikTok deal and wanted to work with Trump to make it happen. spoke.

McCourt also told CNBC that he wants Tiktok to run a decentralized social networking protocol (DSNP) overseen by Project Liberty Institute, a nonprofit founded by billionaires.

Bidding benefits aside, many legal and technology experts told CNBC that Trump’s executive order delaying the TikTok ban conflicts with the Supreme Court’s previous ruling in favor of Pafaka and could face legal opposition. He said it was sexual.

O’Leary also said after the Supreme Court on Sunday upheld an impending ban on TikTok that protects Americans from the Foreign Hostile Applications Act (Pafaka Act), no TikTok transaction could occur under current law. It can’t be done, he told CNBC on Monday.

Beijing’s pending negotiations with Trump on trade with the United States are expected to play a deciding factor in whether the Chinese government will be allowed to fire the ordinance.

“In this game of high-stakes poker between the Trump administration and Beijing, it’s clear that TikTok is a big chip on the table,” Wedosch said.