China Considers Selling TikTok US Ops to Elon Musk Amid Ban

Chinese authorities are considering selling the U.S.-based operations of TikTok to Elon Musk, according to a Bloomberg report. Although Beijing would prefer that ByteDance keep control of the app, a ban is scheduled for January 19, and the Chinese government is under increasing pressure to find a resolution. The move comes amid an ongoing debate about how to interact with President-elect Donald Trump, who is likely to name Musk to his administration after he takes office later this month.

TikTok

Chinese Officials Consider Selling TikTok US Operations to Elon Musk Amid Looming Ban

One scenario being considered is for Musk’s X (formerly Twitter) to purchase TikTok’s U.S. operations and run both businesses together. TikTok has about 170 million U.S. users, and the acquisition could help X better compete for advertisers. Musk’s AI company xAI may also benefit from TikTok’s data wealth in advancing its artificial intelligence features.

TikTok 3 1 China Considers Selling TikTok US Ops to Elon Musk Amid Ban

The ultimate decision on the sale may not include ByteDance, since Chinese state officials appear to be exploring alternatives without the company’s input. Bloomberg also noted that it’s uncertain whether Musk, TikTok, ByteDance, or government officials have actually been in any discussions regarding an agreement like that. A spokesman for Musk did not comment, and Chinese Foreign Ministry spokesman Guo Jiakun declined to comment. A representative for ByteDance dismissed the reports as “pure fiction.”

TIkTok 2 1 China Considers Selling TikTok US Ops to Elon Musk Amid Ban

The Chinese government holds a “golden share” in ByteDance, which gives it significant influence over the company’s operations. In addition, Chinese export rules forbid Chinese firms from selling software algorithms, which is a core part of TikTok’s business model that has triggered some of the most controversy. TikTok’s U.S. operations are valued at about $40 billion, and separating the app’s operations is a complicated and geopolitically charged matter. Trump, however, has said he is considering delaying the ban in order to take part in negotiations that may allow the app to continue operating in the U.S.

FAQs

Why is China considering selling TikTok’s U.S. operations?

China is exploring the sale due to a looming U.S. ban, seeking a resolution.

What is the value of TikTok’s U.S. operations?

TikTok’s U.S. business is valued at approximately $40 billion.

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