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Trump Said He Was Open to Musk or Ellison Buying TikTok. No Deal Was Announced.

Trump’s January 21, 2025 comments about Musk, Ellison and a 50% U.S. stake were a proposal—not a completed TikTok sale. The legal and technical hurdles remained unresolved.
From TheFinanceBase Team6 min to read
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On January 21, 2025, President Donald Trump said he would be open to Elon Musk or Oracle chairman Larry Ellison buying TikTok. He also floated a structure in which a buyer would give the United States a 50% stake in a joint venture in exchange for permission for the app to keep operating. Those were policy remarks and a negotiating concept—not a bid, sale agreement, government-approved transaction or confirmed joint venture.

As of August 18, 2026, the sources available for this article do not verify that Musk or Ellison bought TikTok, that ByteDance accepted an offer, or that the proposed 50/50 venture was formed.

What Trump actually proposed

Trump made the comments at a White House event involving Ellison, SoftBank chief executive Masayoshi Son and OpenAI chief executive Sam Altman. The event centered on the Stargate artificial-intelligence infrastructure project, but reporters asked Trump about TikTok. Bloomberg reported three distinct points:

  • Trump said he was open to Musk buying TikTok.
  • He said Ellison could buy it as well.
  • He suggested that an interested buyer acquire the business, transfer half of a joint venture to the United States and receive authorization for TikTok to continue operating.

Trump described TikTok as highly valuable with U.S. approval and effectively worthless without it. He did not identify a purchase price, a government entity that would hold equity, a valuation method, voting rights, board structure or any binding process for selecting a buyer.

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Ellison responded positively during the exchange, but that does not establish a bid, financing commitment or agreement. Nothing in the remarks showed that Musk had offered to buy TikTok or that ByteDance had agreed to sell it.

Why TikTok faced a U.S. shutdown

The backdrop was the Protecting Americans from Foreign Adversary Controlled Applications Act, enacted in 2024. Its TikTok deadline was January 19, 2025. The statute restricted U.S. app stores and internet-hosting providers from supporting a covered application unless ByteDance completed a “qualified divestiture.”

A qualified divestiture was more demanding than changing the name of a U.S. subsidiary or selling a corporate shell. The required transaction had to remove foreign-adversary control and the relevant operational relationship with the application. The statutory text is available at Congress.gov; the Congressional Research Service explains the standard in its legal analysis and related HTML analysis.

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TikTok became temporarily unavailable to U.S. users around the deadline, and the app and other ByteDance applications were removed from certain app stores. The law did not itself require the United States to receive an ownership stake.

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What the Supreme Court and Trump’s order changed

January 17: Supreme Court decision

On January 17, 2025, the Supreme Court rejected TikTok’s First Amendment challenge. The Court did not order a sale. Its decision allowed the statutory restrictions to take effect unless the required divestiture occurred. The opinion is available from the Supreme Court.

January 20: Executive Order 14166

On January 20, Trump signed Executive Order 14166. It directed the attorney general not to enforce the act for 75 days while the administration evaluated its options and instructed the Justice Department to communicate that temporary position to covered service providers. The Congressional Research Service summarizes the order at Congress.gov.

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The order did not repeal the statute, change the definition of qualified divestiture, transfer TikTok to the government or create a binding acquisition process. It also did not establish that a president could permanently exchange an operating authorization for government equity.

Why a 50% U.S. stake would not automatically solve the legal problem

Trump’s proposal was an additional political and commercial idea layered onto the statute, not the statute’s prescribed remedy. A government-owned half of a company could still fail the qualified-divestiture test if ByteDance retained meaningful influence over operations, the recommendation algorithm, technology, licensing or strategic decisions.

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The proposal also leaves basic public-law questions unanswered:

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  • Which federal entity would own the interest, and would Congress need to authorize that ownership?
  • How would the stake be valued, and would the government receive voting rights, board seats, profits or only an economic claim?
  • Could a president condition permission to operate on transferring private equity to the government?
  • Would government ownership create First Amendment concerns if officials gained influence over content or moderation?
  • Would national-security, antitrust or other regulatory reviews still be required?

Those questions were unresolved in Trump’s remarks. A presidential statement is not a substitute for legislation, a contract, regulatory approval or a court ruling.

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What a real transaction would have to resolve

The algorithm and technical independence

TikTok’s value is not limited to its U.S. users, brand and advertising relationships. A buyer would need to determine whether the recommendation system would be transferred, licensed, rebuilt or separated. A U.S. corporate shell that still depended on ByteDance-controlled code, engineers or decision-making could face the same legal problem under the statute and might not deliver the existing TikTok experience.

Data, operations and security

A transaction would need clear control over U.S. user data, cloud access, engineering, content moderation, advertising systems, trust-and-safety functions and incident response. It would also need to define which technical relationships with ByteDance ended and how compliance would be monitored.

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Chinese regulatory issues

If software or algorithmic technology is subject to Chinese export controls or approval requirements, a buyer might not be able to acquire every asset needed to replicate TikTok’s current service. That possibility is a transaction risk, not proof that a sale was impossible.

Price, financing and governance

Valuation would have to account for the ban risk, the value of TikTok’s users and advertisers, the algorithm, ongoing litigation and the possibility that the seller could not transfer all technology. The parties would also need a board and voting arrangement that gives the buyer genuine independence and avoids political interference.

Musk and Ellison were hypothetical buyers, not confirmed bidders

Person or company Why Trump named them Potential strengths Unresolved concerns
Elon Musk Trump supporter and owner of X, formerly Twitter Experience owning a large social platform; familiarity with advertising, moderation and platform infrastructure; ability to assemble capital or partners Financing scale, management bandwidth, competition scrutiny from combining major social platforms, conflict-of-interest questions and possible effects on advertiser and creator trust
Larry Ellison / Oracle Ellison was present at the White House event; Oracle is a major cloud and data-infrastructure company Enterprise-cloud, security and data expertise; existing relevance to TikTok infrastructure discussions Cloud capability is not the same as operating a consumer social network; partners would likely be needed for moderation, creators, advertising and product management; existing commercial ties would require independence safeguards

These are evaluation factors, not evidence that either person had made an offer. The Independent’s account also describes the comments and their legal context without establishing a completed transaction.

Timeline: what happened and when

Date Event
January 17, 2025 The Supreme Court rejected TikTok’s challenge to the divest-or-ban framework.
January 19, 2025 The statute’s TikTok deadline arrived; the app temporarily went offline for U.S. users.
January 20, 2025 Trump signed Executive Order 14166, directing a 75-day non-enforcement period.
January 21, 2025 Trump said he was open to Musk or Ellison buying TikTok and floated a 50% U.S. joint-venture stake.
February 13, 2025 The Congressional Research Service later reported that Apple and Google restored TikTok and other ByteDance apps after receiving Justice Department assurances about enforcement exposure.

Confirmed versus unconfirmed

Confirmed

  • Trump publicly expressed openness to Musk or Ellison buying TikTok on January 21, 2025.
  • He floated giving the United States half of a joint venture in exchange for authorization to operate.
  • The qualified-divestiture law, the Supreme Court decision and the 75-day executive-order delay formed the legal backdrop.

Not confirmed

  • A bid, signed agreement, purchase price or ByteDance approval.
  • Congressional authorization for a federal ownership stake.
  • A completed joint venture or permanent operating permit.
  • That Musk, Ellison or Oracle ultimately acquired TikTok.

The practical bottom line is straightforward: Trump opened the door rhetorically, but a workable deal would still require a willing seller, a financially capable buyer, a legally valid divestiture and a credible answer to control of TikTok’s algorithm, data and operations.

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