Chinese officials are evaluating a potential option that involves Elon Musk, far and away the world’s richest person, acquiring the American operations of TikTok if the company fails to fend off a U.S. ban on the short-video app, Bloomberg News reports citing “people familiar with the matter.” TikTok-owner ByteDance’s leaders have repeatedly said their priority is to fight U.S. legislation that requires the Chinese Communist Party-controlled company sell or shut down U.S. operations because of American national security concerns.
Beijing officials strongly prefer that TikTok remains under the ownership of parent ByteDance Ltd., the people say, and the company is contesting the impending ban with an appeal to the US Supreme Court. But the justices signaled during arguments on Jan. 10 that they are likely to uphold the law. Senior Chinese officials had already begun to debate contingency plans for TikTok as part of an expansive discussion on how to work with Donald Trump’s administration, one of which involves Musk, said the people, asking not to be identified revealing confidential discussions.
A potential high-profile deal with one of Trump’s closest allies holds some appeal for the Chinese government, which is expected to have some say over whether TikTok is ultimately sold, said the people. Musk spent more than $250 million supporting Trump’s re-election, and has been tapped for a prominent role in improving government efficiency after the Republican takes office.
Under one scenario that’s been discussed by the Chinese government, Musk’s X — the former Twitter — would take control of TikTok US and run the businesses together, the people said. With more than 170 million users in the US, TikTok could bolster X’s efforts to attract advertisers. Musk also founded a separate artificial intelligence company, xAI, that could benefit from the huge amounts of data generated from TikTok.
TikTok’s US operations could be valued at around $40 billion to $50 billion… President-elect Trump, who takes office Jan. 20, has sought to delay the TikTok ban — which takes effect Jan. 19 — so he can work on the negotiations. He has said he wants to “save” the app and there’s been speculation he could take last-minute action to sidestep the ban.
MacDailyNews Take: It would be synergistic to the nth degree.
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
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