TikTok has strongly denied reports suggesting that Chinese officials are considering a potential sale of the app’s U.S. operations to billionaire Elon Musk, calling the speculation “pure fiction.”
According to reports from Bloomberg and the Financial Times, Chinese authorities have held preliminary discussions about a contingency plan in case TikTok’s parent company, ByteDance, fails to avoid a looming U.S. ban.
The reports suggested that Musk could either acquire the platform outright or act as a broker to facilitate a sale to another American entity. However, TikTok has firmly rejected these claims, reiterating its stance that it will not sell its U.S. operations, despite mounting political pressure.
Forbes has estimated that any acquisition of TikTok’s U.S. operations would carry a price tag between $40 billion and $50 billion.
A TikTok spokesperson stated simply” “We can’t be expected to comment on pure fiction”.
TikTok’s Meteoric Rise and Regulatory Scrutiny
TikTok, with its endless feed of short-form videos, has become a dominant force in the social media landscape since surpassing Facebook, Instagram, Snapchat, and YouTube in app downloads back in 2018. It now boasts 170 million users in the United States.
However, its rapid ascent has drawn scrutiny from U.S. lawmakers concerned about national security risks, specifically regarding potential influence from the Chinese government due to ByteDance’s ownership. Critics argue that China’s Communist Party could exert pressure on ByteDance to collect user data or manipulate content seen by American audiences.
In April, the U.S. House of Representatives passed a bill requiring ByteDance to sell TikTok’s U.S. operations or face a complete ban. The Supreme Court is currently reviewing the legality of this legislation, with a decision expected by January 19. Early indications suggest the court may uphold the sale-or-ban requirement.
Reports indicate that Chinese officials still prefer for TikTok to remain under ByteDance’s control. However, Bloomberg’s sources claim contingency plans have been discussed, including the possibility of Elon Musk acquiring or co-managing TikTok’s U.S. operations alongside his social media platform, X (formerly Twitter).
China’s government holds a “golden share” in ByteDance, which grants partial influence over the company’s decisions. Some members of Congress argue that this stake could allow the Chinese government undue control over TikTok.
The Bloomberg report suggested that Musk’s platform X might collaborate with TikTok in a joint operational structure, but no clear details have emerged on whether ByteDance, TikTok, or Musk himself have engaged in direct talks.
Any sale involving a platform as large as TikTok would likely face significant regulatory challenges. The Federal Trade Commission (FTC) and the Department of Justice would almost certainly scrutinise the deal closely, particularly given Musk’s existing control over X and the potential consolidation of social media power.
Musk previously drew regulatory attention for his 2022 acquisition of Twitter for $44 billion, which he later renamed X. His involvement in the TikTok situation could face similar challenges, especially given his public endorsements of right-leaning political content on X.
What’s Next?
The Supreme Court’s pending decision could determine TikTok’s fate in the U.S. If the court upholds the legislation, ByteDance may face a forced sale or an outright ban. Meanwhile, TikTok continues to appeal the ban, arguing that it constitutes a violation of free speech protections under the First Amendment.
As for Elon Musk, he, his social platform X, and Chinese officials have yet to make any public statements addressing the reports directly. Whether these speculative discussions lead to any formal negotiations remains uncertain.
For now, TikTok users in the U.S. remain in limbo as the legal battle and regulatory pressure continue to unfold.
