Title: TikTok's Transformation into a Power Play Piece in the U.S.-China Standoff
Trump has characterized the US's TikTok ban as a potential business opportunity, stating, "I have the right to make a deal." Valuing TikTok at "a trillion dollars," the president has suggested American involvement in its ownership. Elon Musk and Larry Ellison are among the tech moguls Trump would consider to take over TikTok, provided ByteDance agrees and the Chinese government approves. Some analysts believe TikTok's fate is intertwined with other dealings between the US and China, like Trump's tariff threats.
According to Wedbush Securities managing director Dan Ives, TikTok serves as a poker chip in the high-stakes game between China and the US. Trump's recent comments about Musk and Ellison amount to a blessing for a potential deal, with Ives expecting more twists and turns ahead.
ByteDance board member Bill Ford, speaking at a Davos event, expressed his belief that a TikTok deal will get done. He expects a three-way conversation between the Chinese government, the US government, and the company to make it happen. Ford, a US-based ByteDance board member, noted that a deal would involve the interests of all three parties.
Trump signed an executive order to delay the enforcement of the federal ban on TikTok for 75 days, which has given time for TikTok to find a buyer or comply with US regulations. Despite President Trump's announcements, some experts suggest that TikTok's US tech partners still face potential legal risks.
Trump has advocated for a "joint venture" structure, allowing him to approve TikTok in the US. He has proposed this structure in various ways but hasn't specified whether China is interested in it. ByteDance reportedly refuses to part with its powerful algorithms, which could complicate any efforts to sell or share ownership of the platform.
Trump has argued that millions of small businesses and content creators in the US rely on TikTok, thus necessitating its preservation. He has also emphasized the app's popularity in the US and his personal presence on the platform.
Ultimately, the outcome of the TikTok situation will depend on multiple factors, including Chinese approval, Elon Musk or Larry Ellison's capability to execute the deal, and the ability to navigate legal and regulatory hurdles.
The media has often discussed the potential business opportunity in TikTok's future, given Trump's advocacy for a sale or joint venture. Analysts believe that any deal involving TikTok could have significant implications for the tech business sector.
