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Chinese officials are considering a potential deal that could see Elon Musk acquiring the US operations of TikTok if the popular short-video app fails to prevent a controversial ban, according to the Bloomberg.
While Beijing prefers TikTok to remain under the ownership of its parent company, ByteDance Ltd., the Chinese government is evaluating contingency plans, including a high-profile transaction with Musk. This comes amid ongoing efforts to challenge the impending ban through an appeal to the US Supreme Court. However, with justices signaling that they may uphold the law, the situation remains uncertain.
One option being discussed by the Chinese government would involve Musk’s company, X (formerly Twitter), taking control of TikTok’s US operations. The integration could allow TikTok’s vast user base of over 170 million in the US to complement X’s advertising efforts. Additionally, Musk’s AI company, xAI, could benefit from TikTok’s data.
Though deliberations are still in the early stages, Chinese officials have yet to reach a consensus on how to proceed. The potential sale of TikTok’s US business would not only be a significant move for Musk but could also influence the broader US-China relationship. Musk’s strong ties with former President Donald Trump, including financial support for Trump’s re-election, are seen as adding appeal to this potential deal.
ByteDance has not publicly commented on these discussions, and the future of TikTok in the US remains uncertain. Despite challenges, TikTok’s legal team is focused on contesting the ban in the courts. However, if the ban proceeds, the sale of the US operations could become a viable solution.
Given the complexities of such a sale and the value of TikTok’s US business estimated at up to $50 billion, any transaction would require careful negotiation, likely involving both the Chinese government and the US government.
While options like selling to Musk are being discussed, TikTok and ByteDance may continue to explore ways to resist the ban or find alternative solutions.
