Could Elon Musk Become TikTok’s New Owner?
China is reportedly considering selling TikTok to Elon Musk before the platform is banned.
That’s one option the Chinese government is considering if TikTok parent ByteDance can’t halt the U.S. government’s ban of the popular video app, Bloomberg News reported Tuesday (Jan. 14), citing sources familiar with the matter.
Those sources say China would much rather see TikTok under ByteDance’s control, with the company recently taking the matter to the U.S. Supreme Court. However, the justices seemed to indicate last week that they are likely to uphold the ban.
Now, the Chinese government is debating contingency plans for TikTok as it prepares for the new Trump administration. One of those plans, the sources said, involves Musk. They said a major deal with one of Trump’s closest allies is appealing to Beijing.
In one scenario floated by the Chinese government, Musk’s social media platform X — formerly known as Twitter — would take control of TikTok U.S. and run the businesses together, the sources said. They added that the discussions among government officials suggest the future of TikTok in the U.S. is no longer solely up to ByteDance.
President Joe Biden signed a law last year requiring ByteDance to sell TikTok by Jan. 19. Legislators from both major parties had backed the ban, citing national security concerns.
If ByteDance doesn’t sell, the law requires Apple and Google to ensure their platforms no longer support TikTok in the U.S.
President-elect Donald Trump, who had been in favor of a TikTok ban during his first term in the White House, has since reversed course on the issue, indicating support for keeping TikTok in a speech to the Turning Point AmericaFest in December.
“I think we’re going to have to start thinking because, you know, we did go on TikTok, and we had a great response with billions of views, billions and billions of views,” said Trump.
“They brought me a chart, and it was a record, and it was so beautiful to see, and as I looked at it, I said, ‘Maybe we gotta keep this sucker around for a little while’,” he added.
PYMNTS looked at the impact the TikTok ban could have on creators’ brand visibility and engagement in a report last year.
“I think it would present new challenges for us as a small business, once the TikTok ban comes into effect,” said Fiona Co Chan, CEO and founder of Youthforia, a skincare company with more than 185,000 followers on the platform.
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