Chinese officials consider selling US TikTok operations to Elon Musk: Report

Elon Musk to buy TikTok from China?

Chinese officials are reportedly considering a sale of TikTok‘s US operations to billionaire Elon Musk, according to a report. This move comes as the video-sharing platform faces pressure from a US law requiring Chinese parent company ByteDance to divest its American business.

Musk’s Social Media company X is a potential buyer

The report highlights a possible scenario in which Musk’s social media platform, X (formerly Twitter), would acquire TikTok’s US operations. If this deal materializes, TikTok could potentially integrate into the X ecosystem. TikTok’s US business is valued at an estimated $40 to $50 billion.

Despite Musk’s status as the world’s wealthiest person, the report noted uncertainties around how he could finance such a transaction, raising questions about whether he would need to liquidate other assets.

Legal pressure on ByteDance to divest

A US law passed last year mandates that ByteDance either sell TikTok’s US operations or shut them down entirely. This legislation is set to take effect on Sunday, coinciding with the day before President-elect Donald Trump assumes office.

The US government has accused TikTok of facilitating data collection for Beijing and serving as a platform for Chinese propaganda. Both ByteDance and Chinese officials have strongly denied these allegations.

TikTok’s legal battle and Supreme Court hearing

TikTok has challenged the law, taking the case to the US Supreme Court. During oral arguments last Friday, several justices appeared skeptical of TikTok’s claim that forcing a sale violates First Amendment free speech rights.

Beijing’s preliminary consideration of a sale

Bloomberg reported that discussions in Beijing regarding Musk’s potential purchase are still in the early stages. Chinese officials have not reached a consensus on how to proceed, and it remains unclear how much ByteDance is involved in these deliberations.

A TikTok spokesperson, when contacted by AFP, declined to comment directly but referred Variety to a statement dismissing the report as “pure fiction.”

Musk’s ties to China and Washington

Musk’s business interests add complexity to the situation. As the head of Tesla, a company with significant operations and a major market in China, Musk maintains close ties to the country. Simultaneously, his political connections in Washington, including ties to former President Trump, could influence his ability to navigate the acquisition.

US-China trade tensions

This potential transaction unfolds against a backdrop of heightened US-China trade tensions. Trump has repeatedly threatened additional tariffs on Chinese goods, expanding a trade conflict initiated during his first term. These policies were largely maintained and in some cases extended, by outgoing President Joe Biden.

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