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China Considers Selling TikTok US Operations to Elon Musk: Bloomberg

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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.

 

US Lawmakers Push Biden to Extend TikTok Ban Deadline

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Two Democratic lawmakers on Monday urged Congress and President Joe Biden to extend the January 19 deadline for China-based ByteDance to divest TikTok’s U.S. assets or face a nationwide ban. With TikTok’s fate hanging in the balance, both lawmakers emphasized the social, cultural, and economic consequences of banning the app, which is used by 170 million Americans.

Legal and Legislative Challenges

The Supreme Court recently heard arguments regarding TikTok and ByteDance’s challenge to the law mandating the divestiture. Noel Francisco, a lawyer representing the companies, stated that completing a sale by the current deadline is “impossible.” He added that a ban would cause TikTok to go offline almost immediately, effectively shutting down the platform.

President Biden has the authority to extend the deadline by 90 days if he certifies that ByteDance is making meaningful progress toward divestiture. However, the likelihood of ByteDance meeting such standards within the timeframe remains low.

Legislative Proposals to Delay the Deadline

Senator Edward Markey announced his intention to introduce legislation to extend the deadline by an additional 270 days, citing the unique role TikTok plays in fostering social connections and economic opportunities. “A ban would dismantle a one-of-a-kind informational and cultural ecosystem, silencing millions in the process,” Markey said. He also warned that millions of Americans who rely on TikTok for their livelihood would face significant consequences.

Representative Ro Khanna echoed these concerns, urging both Biden and President-elect Donald Trump to delay the ban. “We cannot let 170 million Americans lose their free speech and economic opportunities overnight,” Khanna said.

Potential Impacts of the Ban

If the Supreme Court does not intervene by January 19, new downloads of TikTok on Apple and Google app stores will be prohibited. While existing users may retain access temporarily, the app’s functionality will degrade over time as U.S. companies will no longer be allowed to provide support. Ultimately, services will cease entirely.

President-elect Trump has also expressed interest in delaying the ban, requesting the court to postpone its implementation until after his inauguration on January 20. Trump argued that additional time is needed to seek a “political resolution” to the issue.

Next Steps

As the deadline approaches, the White House has not issued a statement on the lawmakers’ requests or its plans for TikTok. The situation remains uncertain, with the fate of the app potentially hinging on legislative action or further court rulings.

 

TikTok Assures U.S. Employees Ahead of Potential Ban Deadline

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TikTok has reassured its U.S. employees about job security ahead of the looming January 19 deadline for a potential ban or forced sale of the popular short-video app. In an internal memo reviewed by Reuters on Tuesday, the company’s leadership stressed that U.S. employees would continue to receive their pay and benefits even if the Supreme Court does not intervene in the legal proceedings.

TikTok’s Commitment to Employees Amid Uncertainty

The memo, addressing TikTok’s 7,000 U.S.-based workers, emphasized that the company’s leadership is focused on the well-being of its employees, confirming that both employment and offices would remain unaffected even if the law, which mandates a sale or ban of the app, takes effect. TikTok reaffirmed that operations, including employee pay, would remain stable regardless of the legal outcome by the January 19 deadline.

“We want to reinforce that as employees in the U.S., your employment, pay, and benefits are secure, and our offices will remain open,” the memo stated.

The Impact of the Pending Law

Last week, the U.S. Supreme Court appeared to be inclined to uphold a law passed in April that could result in TikTok’s sale or ban. This law has raised concerns among U.S. lawmakers and President-elect Donald Trump, who has expressed a desire to seek a “political resolution” once he assumes office. While the law primarily focuses on TikTok’s operations within the U.S. and its user experience, it could have far-reaching effects on the app’s future.

Potential Consequences of the January 19 Deadline

If the Supreme Court does not block the law before the January 19 deadline, new downloads of TikTok on platforms like Apple and Google would be prohibited. Existing users would still be able to access the app for a time, but as support from other companies is halted, TikTok’s services could eventually degrade and cease to function.

TikTok, owned by China-based ByteDance, has maintained that it is doing everything possible to protect its users and employees while navigating this complex regulatory environment. The company remains in discussions to find solutions that would allow it to continue operating in the U.S.