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With the impending TikTok ban set for January 19, a report has emerged that Chinese officials are weighing up selling the app to Elon Musk.
Musk, the world’s richest man who already owns X (formerly Twitter), is being linked with the sale owing to his close ties with the incoming Trump administration.
Bloomberg reports that Beijing officials would prefer TikTok to stay under the ownership of ByteDance. But with the U.S. Supreme Court signaling their intention to uphold the ban, officials are ready to consider a sale.
The article published by Bloomberg details that senior Chinese officials are discussing the best way to work with Trump’s second presidency and a high-profile deal with one of Trump’s closest allies holds potential appeal to high-ranking members of the Chinese Communist Party (CCP). Musk, who spent over $250 million on Trump’s re-election campaign, is set for a role improving efficiency across governmental departments.
The path for this deal remains unclear with Chinese officials reportedly yet to reach a consensus. It’s also unclear to what extent ByteDance knows about these preliminary discussions and whether Musk has been involved. Bloomberg reports that one scenario being discussed is that Musk’s X takes control of TikTok U.S. and the businesses are run together. TikTok and its 170 million users in the U.S. could massively bolster advertising. Musk has struggled to keep advertisers on X since he took it over.
In my opinion, TikTok should not be banned in the USA, even though such a ban may benefit the 𝕏 platform.
Doing so would be contrary to freedom of speech and expression. It is not what America stands for.
— Elon Musk (@elonmusk) April 19, 2024
Musk has not commented on the speculation but tweeted in April that he believes “TikTok should not be banned in the USA, even though such a ban may benefit the X platform. Doing so would be contrary to freedom of speech and expression. It is not what America stands for.”
A Bytedance representative calls Bloomberg’s report “pure fiction.” However, the news outlet reports that the talks being held in Beijing means that the app’s fate may be out of ByteDance’s control. China’s government holds a “golden share” which influences ByteDance’s operations.
Bloomberg analysts estimate that TikTok U.S. could be valued in the $40 to $50 billion region. Musk paid $44 billion for Twitter in 2022 and is still paying off loans from that deal.
Musk’s ties to Trump are not the only feather in his cap, the sprawling Tesla factory built in Shanghai has also bought the billionaire goodwill in China where he has established Tesla as a player in the vibrant Chinese EV market.
Why is TikTok Getting Banned?
Multiple U.S. agencies and public officials have stated that TikTok poses a national security risk to the United States because, at any time, the Chinese government could compel the company to hand over a huge trove of US citizens’ personal data.
The law that called for the Chinese-based parent company Bytedance to divest or be banned was passed last year and signed by President Joe Biden. TikTok has since sued multiple times in an attempt to overturn the law, but appeals courts upheld the ban — it was denied an emergency bid to stop the ban from taking place on December 16, 2024 — to this point which has led to it appearing before the Supreme Court.
“Congress has passed my legislation to strengthen our national security and send a message to the world about the power of American leadership: we stand resolutely for democracy and freedom, and against tyranny and oppression,” President Biden said last year when the bill was signed into law.
TikTok has faced scrutiny and bans from both sides of the American political aisle. Before President Biden’s term, then-president Trump attempted to ban the app via executive order which was found to be unconstitutional. In response, congress worked to pass the ban as a law in 2024. Trump has since flip-flopped, now saying that he vows to overturn the law once sworn in.
“We believe the facts and the law are clearly on our side, and we will ultimately prevail,” TikTok said in a public response to the passage of the law last year.
“The fact is, we have invested billions of dollars to keep U.S. data safe and our platform free from outside influence and manipulation. This ban would devastate seven million businesses and silence 170 million Americans. As we continue to challenge this unconstitutional ban, we will continue investing and innovating to ensure TikTok remains a space where Americans of all walks of life can safely come to share their experiences, find joy, and be inspired.”
English (US) ·