Chinese officials have reportedly engaged in preliminary discussions about the possibility of selling TikTok’s operations in the US to billionaire Elon Musk if the popular short-video app cannot avoid a potential ban. Another option on the table is for Musk to act as an intermediary in a deal for selling the app.
While Beijing would prefer TikTok to remain under the ownership of its Chinese parent company, ByteDance, officials have reportedly considered other alternatives, including a sale to Musk.
In the same vein, it was reported that discussions had taken place about the possibility of Musk serving as a go-between for ByteDance and any prospective buyer, potentially preventing the app from being shut down.
A TikTok spokesperson responded to the report by stating, “We can’t be expected to comment on pure fiction.” The company has consistently stated that it has no plans to sell its US operations.
Since its launch, TikTok’s continuous video feed has quickly established itself as one of the world’s largest social networks. The app surpassed Facebook, Instagram, Snapchat, and YouTube in terms of app downloads in 2018 and has since become one of the most popular apps in the US, with 170 million users.
However, the app’s growth has raised concerns among some US politicians, who worry that the Chinese Communist Party could influence TikTok’s parent company, ByteDance.
In April, the US House of Representatives passed a bill mandating that ByteDance either sell the platform or face a complete ban in the US.
In a related development, the US Supreme Court appeared poised to uphold the law requiring either a sale or ban of TikTok by January 19.
It is suggested that TikTok’s US operations could be sold either through a competitive process or through an arrangement involving the government, signaling that the app’s future may no longer be entirely in ByteDance’s hands.
ByteDance is believed to have a “golden share” in TikTok, granting the Chinese government certain powers over the app, a fact that has drawn scrutiny from members of Congress.
One of the possible scenarios under discussion is that Musk’s social media platform X could take over TikTok’s US operations and manage the business jointly, according to the report.
It remains unclear to what extent ByteDance is aware of the reported talks or whether Musk, TikTok, and ByteDance have engaged in any negotiations about a potential deal.
If Musk were to acquire TikTok, it would give him even more control over the US information ecosystem after his purchase of Twitter, which he later rebranded as X, in October 2022.
Initially, Musk pledged that Twitter would maintain political neutrality, but he has since used the platform to publicly support Donald Trump’s bid for re-election and to promote right-wing and far-right political content.
Any takeover of a company the size of TikTok, especially by a rival, would likely face significant scrutiny from the Federal Trade Commission (FTC) and the Department of Justice.
Last month, Trump suggested that his nominee for FTC chair, Andrew Ferguson, would prioritize investigating “big tech censorship.”
A ban on TikTok could spark unrest among its US users. Popular influencer MrBeast, who broadcasts shows on YouTube, a competitor of TikTok owned by Alphabet, humorously offered on X, “Okay fine, I’ll buy TikTok so it doesn’t get banned.”
TikTok has previously stated that the Chinese government’s stake in ByteDance “has no bearing on ByteDance’s global operations outside of China, including TikTok.”