Chinese officials are reportedly considering Elon Musk, the billionaire entrepreneur and owner of social media platform X, as a potential buyer for TikTok’s US operations if the app is banned in the United States. This development could form part of a contingency plan under the incoming Trump administration, according to a Bloomberg report on January 14, citing unnamed sources.
Under one proposed scenario, Musk’s X platform would acquire TikTok’s US business and potentially integrate it into its operations. However, TikTok’s parent company, ByteDance, continues to fight the looming ban through legal channels. A TikTok representative dismissed the report as “pure fiction” in a statement to entertainment outlet Variety.
TikTok Faces Potential US Ban
The US Supreme Court recently signaled it may uphold legislation requiring ByteDance to either sell TikTok’s US operations or cease them altogether. However, President-elect Donald Trump, set to take office on January 20, has expressed interest in delaying the ban to allow for further negotiations.
The push for TikTok’s ban stems from bipartisan concerns over national security, particularly fears that the Chinese government could access American user data or use the platform for surveillance. In March 2023, TikTok CEO Shou Chew faced intense questioning from US lawmakers over these suspicions. Legislation passed later required ByteDance to divest its stake in TikTok or face an effective ban by January 19.
ByteDance has argued the law violates the First Amendment rights of its 170 million US users, with the company filing an emergency appeal to block the legislation. The Supreme Court heard arguments on this case on January 10.
Valuation and Market Implications
Analysts at Bloomberg Intelligence estimate TikTok’s US operations could be valued between $40 billion and $50 billion. Acquiring TikTok would grant Musk’s X platform instant access to a vast library of video content and a massive user base, potentially transforming the platform’s capabilities.
“Buying TikTok for pennies on the dollar and instantly having a library of video content available on that tab would be a game changer,” commented Alex Finn, founder of the productivity platform 1% Better.
Despite the potential benefits, Musk has previously voiced opposition to banning TikTok in the United States. In April 2023, 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. It is not what America stands for.”
Uncertainty Surrounding the Deal
The Bloomberg report clarified that it remains unclear how much ByteDance knows about any discussions within the Chinese government or whether Musk, TikTok, and ByteDance have engaged in direct negotiations. A TikTok representative reiterated, “We can’t be expected to comment on pure fiction.”
As the ban deadline approaches, TikTok’s future in the US remains uncertain. Whether Musk becomes a central figure in the platform’s potential sale will depend on ongoing legal, political, and market dynamics.
