Shortly before the looming possibility of a ban on TikTok in the United States, there were reportedly discussions in Chinese government circles about selling the video platform’s American business to Elon Musk. Financial news agency Bloomberg has given this news Citing unnamed people with knowledge of the confidential conversations. TikTok’s operator has already dismissed the report as “pure fiction”, but according to Bloomberg, ByteDance is not necessarily aware of it. China’s leadership has to agree to a deal and so its influence is enormous. Bloomberg writes, TikTok’s fate in the US may no longer be in ByteDance’s hands.
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Before the ban: China reportedly considering selling TikTok’s US business to Elon MuskBenefits for both parties?
According to the report, selling out to Musk, who already owns an influential social network called X, is one of several options being discussed in China. Because the multi-billionaire has recently become one of the closest confidants of the next US President Donald Trump, it has “a certain appeal”. But Bloomberg does not address others. It was therefore assumed that X would take control of TikTok in the United States and could be responsible for both businesses. This would be interesting for the short messaging service as it could bring back lost advertising customers. Musk’s AI company xAI may also benefit from TikTok’s immense data wealth.
While ByteDance reports The American magazine Variety has already strongly denied thisNeither Musk nor the Chinese leadership has commented on this. TikTok’s U.S. business is valued at $40 billion to $50 billion, according to Bloomberg, and while Musk has a lot of money on paper, it’s not clear whether he can actually raise the money. The majority of his wealth is not directly vested in shares of his electric car company Tesla. The report also said that many ByteDance employees in China view Musk positively. He is considered a successful businessman with Chinese leadership experience.
Meanwhile, time is running out for ByteDance and TikTok. The current law gives a deadline of January 19 for the Chinese company to divest from American businesses. Otherwise, the app will be shut down in the USA on that day. TikTok denies the allegations on which the requirement is based, but it has recently become clear that the US Supreme Court probably will not abide by it. Because ByteDance is headquartered in Beijing, the government there has a decisive role in a potential sale because it would have to give its consent to the transfer of the algorithm that is central to TikTok and was developed there.
(mho)
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