The discussion surrounding the ban or sale of TikTok in the U.S. continues to make rounds. Yesterday, newly instated President Donald Trump answered a reporter saying that he is open to the idea of Elon Musk or Larry Ellison buying TikTok. As soon as he took office, Trump signed an executive order to delay a ban on TikTok, giving the Chinese social media app a 75-day extension to decide whether to stop its U.S. operations or sell the app.
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Trump specifically ordered the Attorney General to not take any action against TikTok or its app providers during this period. Trump also said that he would like to download the TikTok app now since it has been instrumental in reaching younger audiences during his presidential campaign. TikTok resumed services in the U.S. on Sunday evening, but the app remains unavailable for fresh downloads on Apple (AAPL) and Google (GOOGL) play stores.
Why Musk or Ellison?
Musk is the CEO of EV (electric vehicle) maker Tesla (TSLA) and also owns social media platform X, and space exploration company SpaceX. Meanwhile, Ellison is the co-founder, chairman, and chief technology officer of software giant Oracle (ORCL). Trump’s choice of Musk or Ellison is obvious because both have been his biggest supporters in winning the presidential election. Importantly, Musk already operates a social media app in the U.S. and Ellison’s Oracle is the primary cloud infrastructure provider for TikTok in the U.S.
Regarding the sale of TikTok to an American party, Trump has said that he prefers a 50-50 joint venture with owner ByteDance. Additionally, Trump wants the American owner to sell half of its holding in TikTok’s American operations to the U.S. in return for a permit to operate in the country. Trump also acknowledged that TikTok has either no value or is worth a trillion-dollar value if it continues operations in the U.S. The app boasts over 170 million users in the nation.
While Trump is fielding for probable buyers of TikTok U.S., several potential buyers have come to the fore with their bids. Among prominent names, AI (artificial intelligence) search engine startup Perplexity AI has sent a formal bid to ByteDance for the purchase. Moreover, former Trump Treasury Secretary Steven Mnuchin and Shark Tank investor Kevin O’Leary have shown interest in buying TikTok. Also, YouTube star MrBeast, along with a group of investors led by Jesse Tinsley, has also submitted a bid to buy the Chinese app.
Which Is the Best Social Media Stock?
While the fate of TikTok remains in the hands of Trump, investors keen to gain exposure to social media stocks in the U.S. can consider the list of public companies mentioned below. We used the TipRanks’ Stock Comparison tool for Social Media Stocks to understand their current performance.
