DAVOS, Switzerland—President Donald Trump is obsessed with saving TikTok and a solution he and his people are weighing, bankers say.
The deal will involve major private equity players as well as US taxpayer money, according to Buzz at the World Economic Forum in the Swiss ski town.
Bankers definitely want to, even though it’s a heavy lift, they tell me, because the fees for an estimated $20 billion deal could be pretty rich.
Trump’s attempt to override a law with an executive order is a bit legally questionable. From what I hear, it will take more than 75 days to get a paper deal done, including figuring out what the Chinese will sell if anything.
The Chinese Communist Party, which controls every Chinese company, won’t let go of Tiktok’s comprehensive algorithm, which matches users with various other accounts and allegedly collects data.
This means that the buyer will need additional funds above and beyond the acquisition price to build the platform. Several entrepreneurs have already made wild offers to expedite a sale, including Kevin O†Leary of “Shark Tank†fame and Internet Hero “Mr. The Beast, †aka Jimmy Donaldson.
But Trump will probably have to go in with Chinese President Xi and make it happen in a way that pleases everyone. Not easy, I’m told, because let’s face it, we’re global adversaries.
A spokesman for the Trump administration declined to comment.
Trump’s dance with Tiktok is quite interesting. He made a run at banning the app back in 2020 because he believed its owner, the Chinese company Bytedance, employs an algo that allegedly spied on American users for Beijing.
The ban didn’t happen but it did under Biden. Then the app briefly went dark just before the inauguration.
Reenter Trump, the late marketer of “The Teacher” and “The Art of the Deal” fame. Trump says he now likes the platform; He believes this helped him gain an edge with young voters during the election.
He gave the application a reprieve when he issued another executive order Monday night giving 75 days to find a solution that meets the Biden bill (which passed with bipartisan support) in order to keep the U.S. alive.
Too many moving parts. That’s why people on Wall Street (and those in Davos with me) are still betting that Tiktok could go dark for good after a degree of sound and fury that ultimately proves nothing.
Overall, the mood here in Davos—the epicenter of globalism—is pretty interesting this year as the jet-setting elite descended on the gorgeous ski village.
There is not much Maga fear and anger among Middle Eastern CEOs, bankers, oligarchs, money reporters – their many armed guards – as was the case in 2016 when Donald Trump first ran and won.
Globalists expect trade indigestion with tariffs, but nothing existential. They also see a strong leader in Trump, a stark contrast from Biden’s terrible and weak presidency. They like lower taxes and regulations.
They also like the notion of banking on Trump’s plan to try and lift at least part of Tiktok.
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