From Elon Musk, MrBeast to Netflix: Who will buy TikTok to help it avoid a US ban

Popular social media platform TikTok, backed by ByteDance, a Chinese company, received a time extension from US President Donald Trump on January 19 and has nearly two months to find a new buyer for its US operations. Otherwise, it will face a ban.

TikTok was briefly banned on January 19 over concerns of a potential threat to the national security of the US due to its link with China.

However, it is still not clear whether ByteDance is open to selling the popular video app, which could get nearly $50 billion.

TikTok currently boasts 170 million monthly US users and has become a major driver of culture and politics among young Americans; hence, many bidders have expressed their interest in buying it.

Here’s a list of potential TikTok buyers, according to Bloomberg.

Who has publically shown interest?

MrBeast

Jimmy Donaldson, also known as MrBeast, one of the richest content creators, is discussing the possibility of buying TikTok with various investment groups wanting to buy the app. One group is led by tech entrepreneur Jesse Tinsley, founder of Employer.com. However, Donaldson has not finalised the details of the agreement yet.

“Several potential buyers are having ongoing discussions with Jimmy, but he has no exclusive agreements with any of them,” a spokesperson told Bloomberg.

Frank McCourt and Kevin O’Leary

Billionaire McCourt, a billionaire and Shark Tank investor, Kevin O’Leary, has shown interest in buying TikTok, and the bid for the same has already been submitted. According to McCourt, the duo does not need to get the software algorithm that suggests content on the social media platform, making their bid more appealing to ByteDance and the Chinese government, who are not willing to sell the technology. McCourt is open to involving the US government in the agreement as well, “I’m OK with whatever is legal,” he told CNBC.

What does Donald Trump want?

Elon Musk

World’s richest man Elon Musk with a net worth of $440 billion, according to the Bloomberg Billionaires Indexis one the most preferred TikTok buyers for US President Donald Trump.

Musk, one of the top advisors of Donald Trump, owns another social media platform, X, formerly known as Twitter. Even Chinese government officials have discussed the possibility of Musk owning TikTok, making him one of the few potential buyers who will get approval from both the US and Chinese officials.

Larry Ellison

Apart from Elon Musk, Trump is also open to the idea of Oracle Corp. Chairman Larry Ellison buying TikTok. “I’d like Larry to buy it, too,” Trump said at an event. Ellison has often supported Trump. Oracle is also TikTok’s major tech and infrastructure partner and already stores the US data of the platform. Four years ago, when Trump tried to force a sale of TikTok , Oracle was chosen by Trump to buy TikTok before. However, the deal fell apart. Meanwhile, Oracle still has debt from a previous acquisition and invests mostly in data centres.

The US Government

Donald Trump has constantly asserted TikTok should be partially owned by “The United States of America.” He urged that the new buyer must give half of the stake to the US in exchange for a “permit” so that it can operate in the country. However, more details on this arrangement are not out yet. Questions arise over how the government will own a private business or digital media company and whether this arrangement will be approved by China.

Other potential buyers of TikTok

Meta

Meta Platforms Inc. already owns major social media platforms such as Facebook and Instagram, giving them the advantage of an established advertising business and network. This would benefit TikTok to expand its services. CEO Mark Zuckerberg is better than arguably anyone at building massive audiences for such products online. However, the deal is unlikely as Meta is dealing with immense antitrust scrutiny, and the US federal regulators have taken serious charges against it. Therefore, buying another social networking platform is quite unlikely.

Google

Google owns YouTube, the most popular video streaming platform, and has a robust advertising business that would align with TikTok’s interests. The deal will be more appealing as YouTube has a deep understanding and experience with online content creators. However, similar to Meta, Google is dealing with antitrust allegations. Last year, the US Justice Department found that Google had illegally monopolized the online search market. Therefore, the approval of the TikTok deal by US regulators is unlikely.

Amazon

Amazon.com Inc. already has Twitch, a video streaming platform. The Jeff Bezos-backed company is already a TikTok partner on shopping features/ A potential TikTok deal will help to benefit from a deeper integration with TikTok Shop, the app’s e-commerce arm. However, it is not clear whether Amazon is planning to buy TikTok. However, Amazon founder Jeff Bezos’s developing bond with US President Donald Trump does not deny the possibility. Bezos and his partner, Lauren Sanchez, were a part of Trump’s inauguration ceremony.

Microsoft

Another potential buyer for TikTok is the tech giant Microsoft. Four years ago, when TikTok was for sale, MicrosoftCorp. was an early bidder to buy the platform. In terms of social networking sites, Microsoft already owns LinkedIn. In 2020, CEO Satya Nadella called the sales process the “strangest thing” he’d ever worked on. However, currently, there is no clarity on Microsoft’s interest in buying TikTok.

Netflix

Netflix Inc. has never made a major acquisition and has repeatedly denied being interested in such a deal. In 2020, TikTok reportedly approached Netflix about a possible deal. However, nothing materialized at the time; Netflix still remains a possible option among the streaming giants. The deal may help Netflix access millions of young American consumers.