The U.S. is on the brink of banning TikTok, with the Supreme Court leaning toward enforcing a veto. Amid this tense backdrop, rumors emerged that Elon Musk, CEO of Tesla and owner of X, might acquire TikTok’s U.S. operations to prevent the platform’s shutdown in the country.
The reality. The U.S. courts have mandated that ByteDance, TikTok’s parent company, sell its U.S. division by Jan. 19. Failure to do so will result in TikTok ceasing operations in a country where it boasts 170 million users.
The rumor: Musk as a potential buyer. According to Bloomberg, some members of the Chinese government—who wield significant influence over ByteDance—are exploring the possibility of Musk purchasing TikTok’s U.S. division. This move could allow the platform to avoid the looming ban while handing Musk control over both X and TikTok.
Strategic benefits for Musk. If Musk were to acquire TikTok, it could bolster X’s advertising deals and provide a valuable data stream for his AI startup, xAI. However, this acquisition would likely come with challenges, including its astronomical price tag.
Musk’s stance on the ban. The tech titan has previously voiced opposition to banning TikTok, stating in April, “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.” He has yet to address the recent rumors.
The cost of acquisition. Bloomberg analysts estimate TikTok’s U.S. operations to be worth between $40 billion and $50 billion. While Musk managed to purchase X for $44 billion in 2022, the deal involved significant loans. Acquiring TikTok would present a similarly formidable financial challenge.
TikTok’s response: “pure fiction.” TikTok has categorically dismissed the rumor, describing it as “pure fiction,” according to Variety. ByteDance hasn’t indicated any plans to sell its 40% stake in TikTok to U.S. companies or investors.
China’s reluctance to sell. China has shown little inclination to approve a forced sale of TikTok’s U.S. operations. Past statements from Chinese officials suggest that any such deal would likely be blocked, as it would involve exporting sensitive technology.
Countdown to the decision. TikTok’s options are dwindling, with the U.S. veto set to take effect in a matter of days. If enacted, the ban could have far-reaching consequences not only in the U.S. but also in Europe, where TikTok has already faced scrutiny under the DMA regulations.
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