The Chinese government is reportedly considering selling TikTok’s U.S. operations to billionaire Elon Musk, according to a Bloomberg report.
This move is being weighed as a contingency should the U.S. Supreme Court uphold a law banning the app on January 19. Beijing is said to strongly prefer TikTok to remain under the ownership of its parent company, ByteDance Ltd., which has filed an appeal against the impending ban.
During Supreme Court arguments on January 10, justices hinted at the likelihood of upholding the ban, prompting Chinese officials to explore alternative options. The discussions reportedly form part of Beijing’s broader strategy to navigate relations with the incoming administration of President-elect Donald Trump. Musk, a key financier of Trump’s election campaign, is expected to play a significant role in shaping the administration’s decisions.
If the sale materializes, Musk’s X platform would acquire TikTok’s U.S. operations, inheriting its 170 million American users and unlocking billions in potential advertising revenue. However, Bloomberg noted it remains unclear whether ByteDance or TikTok are aware of the discussions, sparking renewed concerns over China’s influence on the social media giant.
Last year, President Joe Biden signed legislation mandating the sale of TikTok’s U.S. operations or the app’s ban on national security grounds. TikTok has argued that the law violates First Amendment protections, and the company has sought a delay in its enforcement. If the ban takes effect on January 19, Apple and Google would be required to remove TikTok from their app stores for new users, though existing users would still have limited access.
The political stakes are high as President-elect Trump’s inauguration looms on January 20, just a day after the potential ban. Trump has called for a pause on the deadline to allow his administration to address the situation politically. Meanwhile, the looming ban could render TikTok obsolete in the U.S. if support services are withdrawn, highlighting the platform’s precarious future.