China considers selling TikTok to Elon Musk; here’s why he’s interested
According to Bloomberg, Chinese authorities are considering selling TikTok to Elon Musk. Beijing would prefer that ByteDance continue to run the contentious app’s US operations, but officials are desperately trying to find a solution as the ban is set to take effect on January 19.
A scenario that has been explored is the acquisition of TikTok US by Musk’s X and the joint operation of the two companies. More than 170 million Americans use the video app, which would help X in its efforts to attract advertisers. Musk is also the founder of xAI, an artificial intelligence startup that might profit from TikTok’s massive data output.
According to sources who discussed to Bloomberg, as part of a larger conversation on how to cooperate with President-elect Donald Trump, Chinese officials are discussing backup plans for TikTok. Later this month, he is expected to take office and assign Elon Musk to his administration.
From the looks of it, ByteDance may not have a voice in the ultimate choice. Additionally, Bloomberg said that it is unknown if Musk, TikTok, ByteDance, and any government representatives actually discussed such a transaction.
An attempt to reach Musk’s representatives was not answered. The corporation “can’t be expected to comment on pure fiction,” according to a ByteDance official, while Guo Jiakun, a spokesman for the Chinese Foreign Ministry, declined to comment.
People claim that Beijing officials are adamant that TikTok stay owned by its parent business, ByteDance Ltd., and the company is appealing the upcoming ban to the US Supreme Court. However, the justices indicated during the Jan. 10 arguments that they would probably enforce the legislation.
With a so-called “golden share” in a company affiliate, the Chinese government controls ByteDance’s operations. Beijing’s export regulations prohibit Chinese companies from selling their software algorithms, which are the most contentious aspect of TikTok.
The platform’s US operations are valued at approximately $40 billion, and the final decision remains a geopolitical and economic nightmare due to the difficulty of splitting the US operations of TikTok. Donald Trump himself said he wanted the ban to be delayed so he could take part in the discussions for a possible solution to keep the app alive.
