Chinese officials are reportedly exploring the possibility of selling TikTok’s U.S. operations to billionaire Elon Musk if the app cannot avoid a looming ban, Bloomberg News reported on Monday. This consideration comes amid increasing pressure from the U.S. government to address national security concerns surrounding TikTok’s Chinese ownership.
Beijing’s Preference and Control
According to sources cited in the Bloomberg report, Chinese officials prefer that TikTok remains under the ownership of its parent company, ByteDance. However, they are weighing alternatives as the January 19 deadline for divestiture or a ban draws near. These alternatives could involve either a competitive sale process or a government-arranged transaction, indicating that ByteDance may no longer have full control over TikTok’s future.
China holds a “golden share” in ByteDance, a stake that some U.S. lawmakers argue grants Beijing influence over TikTok. ByteDance, however, has previously denied that this ownership affects its global operations outside of China, including TikTok.
Potential Deal with Musk
One scenario reportedly under discussion would involve Musk’s social media platform, X, taking control of TikTok’s U.S. operations and running the business jointly. Despite these preliminary talks, there is no consensus among Chinese officials on how to proceed, Bloomberg noted. It is also unclear whether ByteDance, Musk, or TikTok have been directly involved in any discussions.
A TikTok spokesperson dismissed the Bloomberg report, stating, “We can’t be expected to comment on pure fiction.” ByteDance and Musk have not commented on the matter, and China’s Cyberspace Administration and Ministry of Commerce have yet to respond to inquiries.
U.S. Government Pressure
Last week, the U.S. Supreme Court appeared likely to uphold a law requiring ByteDance to sell TikTok’s U.S. operations or face a ban. The deadline for compliance is January 19, driven by concerns over potential national security risks posed by China’s influence on the app. The situation has placed TikTok’s future in the U.S. under intense scrutiny.
What’s Next?
While discussions remain speculative, the potential involvement of Elon Musk adds an intriguing layer to TikTok’s uncertain future. With the deadline looming, any developments—whether through a sale or a ban—are expected to have significant implications for the app’s 170 million U.S. users and the broader tech landscape.
