Bloomberg News reported on Monday that Chinese officials are considering selling TikTok’s US operations to billionaire Elon Musk amid legislative pressure to divest from Chinese ownership. The discussions in Beijing suggest that Musk’s X, the social media company formerly known as Twitter, could acquire TikTok from ByteDance and integrate it into its platform.
The value of TikTok’s US operations is estimated to be between $40 and $50 billion. Despite Musk’s status as the world’s richest individual, Bloomberg expressed uncertainty about his ability to finance the deal or whether he might need to sell other assets to fund the purchase.
A US law enacted last year mandates that ByteDance either sell TikTok or cease operations in the US by Sunday, just one day before President-elect Donald Trump assumes office. The US government contends that TikTok could enable Beijing to gather user data and disseminate propaganda, charges that China and ByteDance vehemently deny.
Chinese officials are evaluating a potential option that involves Elon Musk acquiring the US operations of TikTok if the company fails to fend off a controversial ban on the short-video app, according to people familiar with the matter https://t.co/5UoEx7TB9i pic.twitter.com/GfDM7taO0A
— Bloomberg (@business) January 14, 2025Legal and Political Dynamics
TikTok has legally contested the mandate, escalating its challenge to the US Supreme Court, which deliberated on the matter this past Friday. During the session, justices from conservative and liberal backgrounds seemed sceptical of TikTok’s argument that the forced sale infringes on First Amendment rights.
Bloomberg describes the discussions about Musk potentially acquiring TikTok as still in the early stages, with no consensus yet reached by Chinese officials. Details regarding ByteDance’s awareness of these governmental discussions remain unclear.
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Responses to the report have been reserved; TikTok did not immediately reply to an AFP request for comment. However, a representative told Variety, “We can’t be expected to comment on pure fiction.”
Musk, known for his close ties with Trump and poised to be influential in Washington over the next four years, also operates Tesla, which has substantial investments in China, a key market for electric vehicle manufacturers. This potential deal surfaces as Trump has threatened to impose new tariffs on Chinese goods, potentially escalating the trade tensions established during his previous term and continued by President Joe Biden.
