The President Suggests a 50-50 Partnership Between TikTok and the US, Raising Complex Legal and Strategic Questions
In a surprising twist, President Donald Trump has expressed support for tech moguls Elon Musk and Larry Ellison to potentially acquire TikTok’s US operations. Speaking during a White House press conference, Trump outlined a bold proposal involving the US government taking a 50% stake in the platform in exchange for granting a permit to operate.
“I would be [in favor] if he wanted to buy it,” Trump said about Musk, owner of X (formerly Twitter). “I’d like Larry to buy it, too,” he added, with Oracle’s chairman Larry Ellison by his side. Ellison, whose company already provides hosting services for TikTok, seemed intrigued by the suggestion, commenting, “It sounds like a good deal to me, Mr. President.”
Trump’s plan would involve TikTok’s parent company, the Chinese-owned ByteDance, selling half the company to the US while retaining the remaining share. The arrangement, however, raises significant legal challenges under the Protecting Americans from Foreign Adversary Controlled Applications Act, which demands a full divestiture to an American company. Legal experts suggest a joint venture would fall short of compliance with this statute.
Legal Experts Weigh In
Constitutional law scholars and industry analysts have raised doubts about the feasibility of Trump’s proposal. Jonathan Entin, professor emeritus of law at Case Western Reserve University, noted, “The idea is to get that foreign connection off the table, and a joint venture doesn’t seem like it would do that.”
Nicholas Creel, a business law professor at Georgia College & State University, echoed this sentiment. “As long as foreign nationals from adversary countries own 20% or more of TikTok or retain significant control over its data or algorithm, the app must be banned,” he said.
Moreover, Jared Carter, a constitutional law expert at Vermont Law School, indicated that a 50-50 split would likely violate both the letter and the spirit of the law. “The statute explicitly requires divestiture to an American company,” Carter stated. “National security concerns drive this requirement, and a joint venture doesn’t resolve those concerns.”
Financial Stakes and Geopolitical Implications
Despite legal hurdles, the potential acquisition of TikTok represents a significant financial opportunity for US companies and a critical piece in broader negotiations with China. Dan Ives, global head of tech research at Wedbush Securities, described TikTok as “a chip on the poker table” in ongoing tariff discussions. He expects multiple bids for TikTok’s US operations, with Musk emerging as a likely frontrunner due to his ability to garner approval from both Washington and Beijing.
Musk, who has previously criticized TikTok bans as an infringement on free speech, recently stated on X, “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.”
Challenges to Implementation
The president’s executive order delaying enforcement of the TikTok ban for 75 days could open the door for negotiations, but it also risks legal challenges. “The order is highly likely to be struck down,” Creel said, citing its deviation from the law’s explicit requirements. Congress or competitors like Meta and X may contest Trump’s proposal, arguing it harms their interests.
Ultimately, whether Trump’s vision of a joint venture can materialize remains uncertain. As Entin noted, “You’ve got to have a party that is legally harmed to challenge this. Who’s going to step up?”
As the debate over TikTok’s future unfolds, the stakes—economic, legal, and geopolitical—could not be higher. Whether through Musk, Ellison, or another bidder, the outcome of these negotiations will set a precedent for how the US navigates tech ownership in a globally connected, yet politically divided, world.
By Orlando J. Gutiérrez