China Considers TikTok US Sale to Elon Musk
The Chinese government is reportedly weighing a plan for Elon Musk to acquire TikTok’s U.S. operations to prevent the popular app from being effectively banned in the country. According to Bloomberg News, this TikTok US sale proposal is one of several options under consideration as the U.S. Supreme Court deliberates on a law that could compel ByteDance, TikTok’s parent company, to divest its U.S. business by January 19, 2025.
Contingency Plans
The proposed acquisition by Musk, who already owns X (formerly Twitter), is part of broader contingency measures being debated by senior Chinese officials. These discussions align with ongoing negotiations between China and the incoming administration of President-elect Donald Trump.
The Supreme Court is currently reviewing legislation that would penalize third-party internet providers for supporting TikTok’s operations in the United States if ByteDance fails to divest. TikTok’s legal team argues that the law infringes on the free speech rights of millions of U.S. users, while the U.S. government contends that ByteDance’s ownership poses a national security risk.
Under the reported plan, Musk would manage TikTok’s U.S. operations alongside X, marking a significant expansion of his tech empire. However, sources indicate that Chinese officials have not yet finalized this course of action, and it remains unclear whether ByteDance is aware of the proposal or if Musk has been approached about the matter.
A TikTok spokesperson dismissed the report as “pure fiction,” while representatives for X did not immediately comment.
TikTok’s Legal Challenges
TikTok has become a focal point in U.S. politics, with bipartisan concerns over its ties to China. President Joe Biden signed legislation earlier this year mandating ByteDance’s divestment of TikTok’s U.S. operations, citing national security concerns. The law has faced criticism from TikTok and free speech advocates who argue it undermines user rights.
Adding complexity to the issue, President-elect Trump has shown mixed views on TikTok. Although he supported banning the app during his first administration, his stance softened after a meeting with billionaire investor Jeff Yass, a major stakeholder in ByteDance. Trump recently urged the Supreme Court to delay implementing Biden’s ban, seeking time for a “political resolution.”
Implications of a Potential Sale to Musk
If the acquisition proceeds, it would signal a significant shift in TikTok’s operations and governance, potentially addressing U.S. security concerns while providing ByteDance a path to retain some control over its lucrative platform. However, questions remain about how such a deal would be structured and whether it could resolve the broader geopolitical tensions surrounding TikTok.
Also See:
Also see: Los Angeles Wildfires Destroy Celebrity Homes
Major US Banks Exit Net Zero Alliance Ahead of Trump Presidency
Mayur Bharatbhai, Affordable Lehengas & Shark Tank
L&T Chairman: Remarks on 90-Hour Workweeks Draw Sharp Criticism
—————————————————————
It would mean the world to us if you follow us on Twitter, Instagram and Facebook.
