Connect with us

Business

China mulls TikTok U.S. sale to Elon Musk amid Supreme Court ban threat

Published

on

Tiktok
Spread The News

The Chinese government is reportedly in discussions about selling TikTok’s U.S. operations to billionaire entrepreneur Elon Musk as a contingency plan if the U.S. Supreme Court upholds a ban on the app on January 19.

According to a Bloomberg report citing sources familiar with the matter, Beijing is reluctant to part with TikTok but is exploring alternatives should ByteDance Ltd., TikTok’s parent company, lose its appeal.

Beijing officials are reportedly eager for TikTok to remain under ByteDance’s ownership, viewing the platform as a crucial asset in its global technological influence.

However, the Supreme Court’s arguments on January 10 suggested the justices might uphold the law requiring ByteDance to divest from TikTok on national security grounds.

This development has spurred senior Chinese officials to draft contingency plans, including a potential sale to Musk, as part of broader discussions on managing relations with the incoming Trump administration.

Elon Musk, a significant financier of Donald Trump’s presidential campaign, is reportedly at the center of these discussions. If a sale materializes, Musk’s social media platform, X (formerly Twitter), would acquire TikTok’s U.S. operations, absorbing its 170 million American users and unlocking billions in potential advertising revenue.

READ ALSO: TikTok removes 2.1m Nigerian videos in Q3 2024 for content violations

Analysts speculate that such a deal would bolster Musk’s growing media empire and consolidate his influence in the digital space.

The looming January 19 ban stems from legislation signed into law by President Joe Biden last year, mandating ByteDance’s divestiture of TikTok to address national security concerns.

TikTok has contested the law, arguing that it violates the First Amendment’s protection of free speech. If the ban takes effect, major app stores, including Apple and Google, would be prohibited from offering TikTok to new users, effectively restricting the platform’s growth.

While existing users could still access the app, the lack of support services would gradually render it unusable.

President-elect Donald Trump’s inauguration on January 20 adds another layer of complexity. Trump’s team has expressed interest in delaying the enforcement of the ban to allow his administration to pursue a political resolution.

Advertisement

In December, Trump urged the court to grant a stay on the January 19 deadline, highlighting the potential for a negotiated settlement that aligns with his administration’s strategic goals.

The report also raises questions about ByteDance’s knowledge of China’s discussions. It is unclear whether TikTok or its parent company is fully aware of Beijing’s contingency plans, potentially underscoring China’s influence over the platform’s future.

Critics of TikTok argue that this influence was a key factor behind the legislation mandating divestiture.

As the Supreme Court’s decision looms, the future of TikTok in the U.S. hangs in the balance. If the ban is upheld, it could mark a turning point in U.S.-China tech relations, with implications for digital platforms worldwide.

Whether Elon Musk steps in as a buyer remains speculative, but the move would undeniably reshape the social media landscape. For now, all eyes are on January 19 and the potential ripple effects of the Court’s decision.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published.

Trending