Jamie Spencer
China Reportedly Weighs Elon Musk Acquisition of TikTok’s U.S. Operations
The Chinese government is reportedly considering a plan for Elon Musk to acquire TikTok’s U.S. operations as a contingency to prevent the app from being banned in the United States. The proposal, revealed by Bloomberg News on Monday, is one of several options China is exploring as the U.S. Supreme Court deliberates a law requiring ByteDance to divest TikTok’s U.S. business by January 19.
The potential Musk-TikTok deal
According to the report, Musk would oversee TikTok’s U.S. operations alongside his social media platform X. However, the plan is in its early stages, and Chinese officials have yet to decide whether to proceed. It is also unclear if ByteDance or Musk are aware of these discussions.
If ByteDance fails to divest TikTok by the deadline, third-party internet service providers could face penalties for supporting the app’s operations in the U.S.
Supreme Court and TikTok ban debate
Last week, the U.S. Supreme Court heard arguments on the legality of a law signed by President Joe Biden in April, which could effectively ban TikTok. The U.S. government contends that ByteDance’s ownership poses a national security threat, while TikTok’s legal team argues that the law infringes on the free speech rights of its millions of American users.
With the Court appearing to lean toward upholding the law, TikTok may turn to President-elect Donald Trump when he takes office on January 20. Despite favoring a TikTok ban during his first term, Trump has recently softened his stance, urging the Supreme Court to delay the ban to allow for a political resolution.
Trump’s evolving position
Trump’s changing rhetoric on TikTok coincided with his February meeting with Jeff Yass, a Republican megadonor and significant investor in ByteDance. Yass also owns a stake in the company behind Truth Social, Trump’s social media platform. The meeting reportedly influenced Trump’s reconsideration of TikTok’s fate in the U.S.
Industry and legal reactions
A TikTok spokesperson dismissed the Bloomberg report, calling it “pure fiction,” while X did not immediately respond to requests for comment. The proposed Musk acquisition, if it materializes, could reshape the U.S. social media landscape, but legal, political, and security concerns remain significant hurdles.
As the January 19 deadline approaches, the future of TikTok’s U.S. operations remains uncertain. While China considers contingency plans like Musk’s involvement, the Supreme Court’s decision and Trump’s evolving position will play critical roles in determining the app’s fate. This high-stakes situation underscores the complex interplay of politics, business, and national security in the global tech industry.
