TikTok Ban Wild Card: Elon Musk as a Potential Buyer, Report Says
Jan 14, 2025 - cnet.com
China is reportedly considering selling TikTok's US operations to Elon Musk if the app cannot avoid a potential ban in the US or find a US-approved buyer by January 19. Concerns over national security due to TikTok's ties to the Chinese government have been raised by US lawmakers, and the Supreme Court is expected to rule on the matter soon. ByteDance, TikTok's parent company, would prefer to retain ownership but is open to Musk's acquisition as a contingency plan. The potential deal is in preliminary stages and could integrate TikTok with Musk's platform X, formerly Twitter, enhancing its advertising appeal and leveraging TikTok data for Musk's AI company, xAI.
The Chinese government reportedly views the sale to Musk as a strategy to improve relations with the incoming Trump administration. President-elect Donald Trump, who begins his second term on January 20, initially supported a TikTok ban but has since asked the Supreme Court to delay the ban to seek a resolution. Musk, a close adviser to Trump, has invested heavily in his election campaign. TikTok's valuation is estimated between $40 billion and $50 billion.
Key takeaways:
China is considering selling TikTok's US operations to Elon Musk if a US-approved buyer is not found by the deadline.
The US Supreme Court is expected to rule on a law that could make TikTok unavailable in the US if not sold.
ByteDance, TikTok's parent company, prefers to retain ownership but is reportedly open to Musk's acquisition as a contingency plan.
The potential sale is seen as a strategy by China to improve relations with the incoming Trump administration.
