In light of the impending ban on TikTok, Chinese authorities are exploring the possibility of selling the popular video app to Elon Musk, according to a report by Bloomberg. Although Beijing prefers that ByteDance retains control over TikTok's US operations, the urgency to find a solution has intensified with the deadline approaching on January 19.
Insiders have shared that officials in China are discussing various contingency options for TikTok coinciding with broader talks regarding engagement with President-elect Donald Trump. It is anticipated that Musk will be a significant figure in the new administration, raising the prospect of a collaboration between Musk's ventures and TikTok.
Among the ideas being explored is the potential for Musk's platform X to acquire TikTok's US division, which boasts over 170 million users. Such a move could enhance X's attractiveness to advertisers and provide substantial data for Musk's artificial intelligence endeavors through his company, xAI.
However, it appears that ByteDance may have limited influence over the final outcome. As reported, there is no confirmation that any formal negotiations have transpired between Musk, ByteDance, or government parties related to this deal.
Musk's representatives did not provide comments on the matter. The Chinese Foreign Ministry, represented by spokesman Guo Jiakun, also refrained from discussing the situation, while a ByteDance spokesperson dismissed the speculation as "pure fiction."
The Chinese government’s oversight of ByteDance, through a mechanism known as the “golden share,” complicates any transaction, especially considering existing export regulations that inhibit the sale of software algorithms—TikTok's most controversial component.
Currently, the value of TikTok's US operations is estimated at around $40 billion, and the final outcome remains a complex mix of economic and geopolitical considerations. Trump has previously expressed a desire to delay the ban to engage in negotiations aimed at preserving the application's future.
