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Former President Donald Trump surprised some people when he shared he was against banning TikTok.
While Trump criticized the potential ban and the positive impact it could have on Meta Platforms Inc (NASDAQ:META), there could be a bigger reason for the former president's reversed course.
What Happened: The U.S. House of Representatives approved a bill to force TikTok parent ByteDance to sell TikTok or face a potential ban in the U.S. The bill now faces a vote in Senate and potential signing by President Joe Biden if approved.
Trump is among the people sharing his opinion on the potential TikTok ban.
"If you get rid of TikTok, Facebook and Zuckerschmuck will double their business," Trump posted on his Truth Social account. "I don't want Facebook, who cheated in the last Election, doing better. They are a true Enemy of the People!"
The comments may have been surprising given Trump has previously been against TikTok and supportive of a ban. The former president signed an executive order for ByteDance to divest the TikTok U.S. division. The decision was later blocked by courts.
Trump also owns a media company Trump Media & Technology Group, which is set to merge with Digital World Acquisition Corporation (NASDAQ:DWAC). The company could be considered a rival to TikTok as a social media platform. A ban of TikTok could be beneficial to Trump's media company as it looks to expand into video.
One reason for the potential reversal of his stance on TikTok could be the support of Republican megadonor Jeff Yass, who owns 15% of ByteDance.
A report from Politico featured the potential of Trump looking for a way to benefit from being against the TikTok ban.
"It's a mirror image of 2020," former technology company spokesperson Nu Wexler told Politico. "He tried to ban TikTok and then figured out that there was an out — that he could take care of a donor — and flipped on it."
The report highlighted the order by Trump for ByteDance to sell the U.S. arm of TikTok. The company that would have benefitted from the move was Oracle Corp (NYSE:ORCL), which was co-founded by Trump donor Larry Ellison. Oracle CEO Safra Catz also donated to the Trump campaign for the 2020 election.
Yass is a donor to Club for Growth, a conservative group that supports Trump for the 2024 presidential election. Club for Growth is using former Trump adviser Kellyanne Conway to fight Congress's plan to ban TikTok.
"When it comes to Donald Trump, follow the money," Rep. Nancy Pelosi (D-Calif.) told Politico of Trump's TikTok reversal.
Trump acknowledged in an interview with CNBC that he recently met with Yass but the two did not talk about TikTok or ByteDance.
Related Link: Congress Moves To Ban TikTok: Could Members Benefit From Positions In Social Media Stocks Like Meta Platforms?
Why It's Important: While the reversal of opinion on banning TikTok could have more to do with being outspoken on Meta Platforms and its CEO Mark Zuckerberg, the timing of the reversal after meeting with Yass has drawn scrutiny.
The report also comes after a similar reversal by Trump happened in regards to beer brand Bud Light and its parent company Anheuser-Busch InBev (NYSE:BUD).
"The Bud Light ad was a mistake of epic proportions, and for that a very big price was paid," Trump said.
Trump shared his support for the beer company on Truth Social and told his followers that the company was "not a Woke company."
"Anheuser-Busch is a Great American Brand that deserves a Second Chance."
The positive comments on the beer company came ahead of a fundraiser for the former president hosted by top Anheuser-Busch lobbyist Jeff Miller.
TikTok and Bud Light change of hearts by Trump shared similar timing with events or meetings with major Republican donors.
While it could be purely coincidental, Trump's changing stance on TikTok could become a major talking point ahead of the 2024 presidential election.
Read Next: Trump Tried To Get Elon Musk To Buy Truth Social: New Report Highlights Former President’s Pitch
Photos: Shutterstock
