Chinese officials are exploring the possibility of Elon Musk acquiring TikTok’s US operations should the company fail to overturn an impending ban on the popular short-video app, Bloomberg reports, citing sources familiar with the discussions.
This move comes as TikTok faces a legal challenge in the US, with the Supreme Court appearing likely to uphold the ban.
While Beijing officials reportedly prefer that TikTok remain under the ownership of its parent company, ByteDance Ltd., they are simultaneously considering contingency plans amid growing uncertainty. One such scenario involves a potential acquisition by Musk, a figure who enjoys a close relationship with President-elect Donald Trump.
A deal with Musk is seen as potentially appealing to the Chinese government, as it could present a way to navigate negotiations with the incoming Trump administration, especially concerning tariffs and export controls. Musk, who has previously expressed opposition to a TikTok ban, could position his X platform (formerly Twitter) to take over TikTok’s US operations. This would provide X with access to over 170 million US users, potentially boosting its advertising revenues, and would also give his artificial intelligence company, xAI, access to a massive amount of user data.
Sources indicate that Chinese officials have not yet reached a consensus on the matter, and these discussions remain preliminary. It is also unclear how much ByteDance is aware of these deliberations or whether TikTok and Musk have held any related talks. Neither Musk nor his representatives have commented on the reports.
ByteDance representatives have called the situation “pure fiction,” and are focusing on fighting the ban in the US. They argue that the US legislation infringes on free speech, a point that was seemingly dismissed by Supreme Court Justices during recent arguments. Despite ongoing legal challenges, Beijing seems to be preparing for various outcomes, acknowledging that TikTok’s fate may not be solely in ByteDance’s hands.
The Chinese government reportedly holds influence over ByteDance through a “golden share” in a subsidiary, which grants it strategic oversight. Additionally, Chinese export rules prevent the sale of software algorithms like TikTok’s, giving the government significant leverage in any potential deal. TikTok’s US operations are estimated to be valued between $40 and $50 billion, presenting a substantial financial undertaking for any potential buyer, including Elon Musk.
Musk’s position as a global business leader with close ties to both the US and China makes him a potentially influential figure in the China-US relationship. His company, Tesla, has a major manufacturing presence in China, fostering goodwill with Chinese officials. However, his possible acquisition of TikTok could raise concerns about the influence his relationship with Trump could have on business dealings.
Other parties, including billionaire Frank McCourt and “Shark Tank” investor Kevin O’Leary, have expressed interest in acquiring TikTok through Project Liberty. Microsoft and Oracle have also been linked to potential bids in the past. TikTok itself is reportedly exploring alternatives, including potentially migrating US users to a different app with new branding.
