The TikTok Deal Doesn’t Pass the Smell Test

Okay, it looks like this tick tock deal is going to go through, but it's not aging well and it doesn't smell any better. According to Reuters, AP and PBS, ByteDance has signed binding agreements to shift control of TikTok's US operations into a new US based joint venture led by Oracle, Silver Lake and MGX with a target close of January 2, 2026. But the way this deal came together via repeated enforcement delays and a White House driven framework has critics asking whether this was a real open mark sale or just politically curated friends and favored arrangement. It really just seems a bit too cute for a so called capitalistic country to be doing things like this. So look, there are those on the left who don't like Donald Trump because he cuts taxes for the wealthy. Let's leave them out of the debate here. That's not what this issue is about. The issue is really about are we going to be a crony capitalistic country? Are we going to be more like Russia where unless you are kissing the ring of Vladimir Putin, good luck trying to own a big business or any sort of large industry. That's a different thing. That's crony capitalism. Some like to think of it as fascism. If that word somehow scares you or offends you, we don't have to call it that. But it's not typically what someone associates with free market capitalism, where things are auctioned off publicly and everyone has a fair chance. This was a deal where Trump basically said, how can I find my friends like me who promised to say nice things about me, who promise if it's a media company to kind of put their thumb on the scale to help me out when I need it. That's basically what happened. So the buyer group is dominated by Oracle. Larry Ellison and his boy are big, big supporters and fans of Donald Trump. Other players like, you know, Mr. Beast was interested. Doesn't seem like they really got a fair shake in this. Other facts to note, China is signaling that this is a regulated political transaction, meaning free market stuff. Well, that's a fairy tale. The Chinese don't believe in free markets. Now they're good at doing a lot of things that are in some ways capitalistic. They do have a lot of businesses that make money, but boy, oh boy, first and foremost is do you support the political economy establishment? That's the rule in China. Yes, you can make money as long as you don't criticize the government. And as long as you help the government with its broader initiatives, then you can be kind of capitalistic. Just don't get out of line. Not really what Americans think of as democratic free market capitalism. And that's unfortunately what this deal smells like. Was it a normal auction? You know, let's be honest, the White House managed this. It all centered around Oracle. Other bidders existed, but we don't really know how any of this was evaluated. It was all kept shrouded, it was all kept mysterious. Again, it's Oracle, Silver Lake, mgx. Not a lot of big Democratic supporters there. Not, not Warren Buffett style billionaires in that mix, if you catch my drift. Why is this significant? Because TikTok has 170 million users in the United States. Certainly a majority of voters have a TikTok account or look, certainly look at it regularly and hey, I'm on TikTok. We're streaming this on TikTok right now. So I'm not saying anyone who has anything to do with TikTok is somehow bad. No, I appreciate my TikTok community, but Reuters listed a lot of other interested bidders. Doesn't sound like they were really given any consideration at all. Now the White House is trying to frame this as saving TikTok while protecting national security. And interestingly, you know, Trump was very much against TikTok. So let's kick them out, let's get rid, be tough on the Chinese until they did. They changed an algorithm a year or so ago, you may remember, all of a sudden all a whole lot of pro Trump videos got a lot of extra gas, they got a lot of extra eyeballs and attention. And the owners of TikTok became very obsequious, thanking dear Leader Trump for allowing them to stay on, even though that's not what Congress had asked for and had mandated. So where do we go with this? Is this in a time when our own American cities are being taken over by our American soldiers who are supposed to fight outside of America at a time when the White House is grifting to the point of raising billions of dollars and stuffing their own pockets, when atrocities are happening daily, is this going to even get much attention? No, I don't think so. It's going to just sort of slide away. But I do think it's important to put this in perspective and to not normalize this. This idea that our economy is going to be controlled by a President of the United States who then gives favor to political allies. That's something that there used to be real universal condemnation for something like that. There was universal agreement. Democrats, Republicans, Libertarians, leftists all agreed. That was kind of a really Nasty thing to do. And it's not how successful economies are run. It's just not really the way to do this at all. Why is that? It's because we're supposed to actually believe in free markets making the best judgment, being more efficient. You know what's not efficient? Countries where the leaders get to pick the political or the business winners. Let me give you some example. Russia does this all the time. You've got to appease Putin, you got to give him his share. Well, the gross domestic product per capita According to the IMF in Russia is a piddly pathetic $14953. The United States per capita in 2024, 84,534. So we are now using the policies, the. Whether you want to call it fascistic or socialistic or communistic, it ain't free market enterprise. When the leader, when the dear leader in the White House is picking who gets to own big businesses, that's really more like what does happen in Russia, what happens in Turkey, what happens in Hungary, or even long ago in Cuba. Let's look at some more comparisons in Hungary. Hungary is a great place. I spent a lot of time in Budapest, had fantastic time there. Great people, great food. The pattay is fantastic. And increasingly you hear many on the right, many maga lovers talking about we need to move the United States governance system to something closer, like what Hungary has. I hear it all the time. I've heard it from neighbors here in Florida. Hungary is seen as a big role model. Let's just look at the numbers. Hungary's gross domestic domestic product per capita in 2024, according to the IMF, is a piddly $23,881. So if you want a $60,000 pay cut, if you want to lose basically three fourths of your income, by all means emulate Hungary. Because this is how they do things. And unfortunately, this is the definition of corruption. Russia, you could say, according to international rankings, is one of the most corrupt countries in the world. Hungary, not that far away. But you know what? The US Is catching up. And look, we know Democrats and liberals and progressives can't stand Trump. What I don't understand is why there aren't more honest conservatives in America today speaking out. Because everything about this TikTok deal is. Is contemptuous of conservative values. It's contemptuous of free market values. It weakens the rule of law, predictability. Investors can't trust statutes if normal procedures are ignored and the government just gets to take over businesses and allot ownership to friends. It rewards political access over competition. Free market enterprise is supposed to be about competition, not who you know. It creates moral hazard. Get big enough and you'll get a carve out. It turns national security into deal language instead of enforceable standards. And it invites retaliatory behavior abroad. Okay, you're doing this to us, we're going to do this to you. And I mean, what would happen if every single country that currently where Twitter operates or acts, those countries now say, okay, sorry Musk, sorry US based company, sorry US shareholders, you now have to sell off Twitter, Hungary, Twitter, Estonia has to be a separate company. Could get quite messy indeed. Again, with so many other atrocities in violation of conservative values and liberal values in America, this is seen as a fait accompli. It doesn't mean it's not permanent stain on our country's character.