Chinese officials are considering selling TikTok’s US operations to Elon Musk amid a looming threat of a US ban. Sources close to the matter revealed that ByteDance, TikTok’s parent company, would “strongly prefer” for Musk to acquire the platform rather than it being taken over by another entity.
However, there are concerns about whether Musk is willing and able to take on the responsibility. The estimated cost of acquiring TikTok US could be up to $50 billion. Despite his financial wealth, Musk has struggled with paying off X’s debt since buying Twitter for $44 billion in 2022.
Musk could potentially benefit from gaining access to TikTok’s unique data set of 170 million users, which could provide a more reliable source of revenue and aid X’s transformation into an “everything app.” Acquiring TikTok would also grant Musk control over this valuable user base and significant data. The outcome of the US government’s appeal, which is currently under review by the Supreme Court, will determine whether TikTok must divest or face a ban starting on January 19.
The court’s decision has been heavily influenced by free speech advocates who are pushing for TikTok to be allowed to continue operating in the US. Nevertheless, many justices are said to lean towards banning the platform due to concerns over national security risks. Musk’s close relationship with former President Donald Trump could potentially aid the sale, but there is still uncertainty surrounding whether it will materialize.
Source: https://arstechnica.com/tech-policy/2025/01/elon-musk-could-be-chinas-pick-to-buy-tiktok-report-says