Trump Clears Path for Political Allies to Buy TikTok

WASHINGTON — On Thursday, President Donald Trump issued an executive order that clears a path for the transfer of ownership of TikTok’s U.S. operations to a consortium of private equity funds, media corporations and tech companies that Trump’s political allies control.

In accordance with a 2024 law, the new U.S.-based company will own 80 percent of TikTok’s U.S. arm and operate the popular video-sharing network domestically. The Protecting Americans from Foreign Adversary Controlled Applications Act, which passed in 2024, called for banning TikTok in the United States unless its Chinese owners gave up control over TikTok’s U.S. assets to U.S. owners.

According to several press reports, the investors interested in purchasing TikTok’s U.S. operations include Oracle (a tech company controlled by billionaire Trump supporter Larry Ellison), the Murdoch-owned Fox Corporation, private-equity firm Silver Lake and MGX, a Trump-allied crypto-investment firm based in the United Arab Emirates. According to other reports, the board for the new TikTok U.S. consortium could include a member the Trump administration appoints.

Nora Benavidez, Free Press director of digital justice and civil rights, said:

“While some details still need to be finalized, one thing is clear: This deal further cements the power of a small class of billionaire Trump allies to weaponize and control our public discourse. All the while, the White House is subverting reality and targeting independent media literally every day. This transfer narrows diversity of ownership of media companies and is a major blow to the First Amendment rights of the platform’s many users.

“The transfer of TikTok ownership to Trump’s cronies is the result of deeply misguided legislation that gave the U.S. government sweeping power to restrict Americans’ access to information, ideas and media it doesn’t like. As we’ve seen with the Trump administration’s other dealings with media conglomerates, the White House is exploiting this opportunity to enrich Trump’s friends and muzzle dissenting voices in the United States.

“This administration is doing everything it can to shut down speech it dislikes and punish media companies that dare to hold Trump accountable. Any future Jimmy Kimmel or Stephen Colbert hoping to get a start on the popular video platform will find themselves facing owners who are ready and willing to silence any criticism of Trump or his allies.

“Handing control of TikTok to mega-wealthy presidential yes men is the kind of move we’ve seen in other repressive regimes — the same ones the United States once criticized for their blatant disregard of democratic principles. It’s clearer than ever that we need a broad-based and full-throated rejection of Trump’s campaign against free speech. This will require a mass movement that defends everyone’s First Amendment rights and pushes back against rising authoritarianism.”

Background:
In late 2024, Free Press, the Knight First Amendment Institute and PEN America filed an amicus brief in support of TikTok, arguing that the law requiring the transfer of TikTok assets to U.S. owners violates Americans’ free-speech rights. The groups argued that any official effort to restrict Americans’ access to a social-media platform — including a foreign one — should be subject to stringent First Amendment scrutiny. The groups also argued that the law’s proposed TikTok ban recalled practices that have long been associated with repressive governments, and noted that the ban is unconstitutional because it is “viewpoint-motivated and forecloses an entire medium of expression online.”