Doha – Chinese authorities are reportedly considering Elon Musk as a potential buyer for TikTok’s US operations, as the platform faces a critical deadline this week that could see it banned from operating in the country, according to Bloomberg and The Wall Street Journal.
TikTok’s parent company, ByteDance, must sell its US operations by January 19, or face a complete shutdown in the country where it has 170 million users. This deadline stems from legislation signed by President Biden in April 2024, citing national security concerns over Beijing’s potential data access.
The social media platform has strongly rejected these reports, with a TikTok spokesperson stating to multiple news outlets: “We can’t be expected to comment on pure fiction.” The denial came after Bloomberg reported that Chinese officials had begun discussing contingency plans that could involve Musk’s X platform taking control of TikTok’s US operations.
According to Wedbush analyst Dan Ives, such an acquisition could cost between $40 and $50 billion, comparable to the $44 billion Musk paid for Twitter (now X) in 2022. “This is not a total shock given Musk’s tight relationship with President-elect Donald Trump,” Ives noted in a Tuesday note to clients.
The situation has reached the US Supreme Court, which heard arguments last Friday. While the highest court in America has yet to issue a ruling, reports indicate that a majority of justices appear inclined to uphold the ban. TikTok’s attorney, Noel Francisco, warned that the platform would “go dark” in the US this month without an extension.
President-elect Trump, who initially supported banning TikTok during his first term, has since shifted his position. In a December legal brief, Trump’s lawyers indicated he “seeks the ability to resolve the issues at hand through political means once he takes office.” Trump recently stated, “I have a warm spot in my heart for TikTok because I won youth [in the 2024 election] by 34 points.”
The potential deal has drawn attention due to Musk’s existing business ties with China. Tesla, his electric vehicle company, generated $5.7 billion in revenue from China in its most recent quarter, representing 23% of total earnings. Ives said Musk’s “strong relationship” with the Chinese government is a potentially significant factor.
TikTok CEO Shou Chew met with Trump at Mar-a-Lago in December, amid a series of meetings between the president-elect and tech industry leaders. The platform has consistently argued that the forced sale requirement violates constitutional free speech protections.
ByteDance and the Chinese government have historically opposed selling TikTok’s US operations. However, Bloomberg reports that officials are now exploring contingency plans, including the possibility of X and TikTok operating as integrated platforms under Musk’s leadership.
Musk, who has not commented on the recent reports, previously opposed banning TikTok. In April 2024, he stated: “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.”
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