TikTok has swiftly dismissed a report suggesting that China might facilitate a sale of the app’s U.S. operations to billionaire Elon Musk in a bid to avoid an imminent U.S. ban. The Bloomberg article, published on Monday, claimed that Chinese officials were considering the possibility of Musk acquiring TikTok’s U.S. business if a new U.S. law forces its parent company, ByteDance, to sell its stake in the app or face a ban.
A TikTok spokesperson firmly rejected the report, describing it as “pure fiction.” The company has long argued against the U.S. legislation, claiming that it infringes on the First Amendment rights of its 170 million American users.
Musk’s Silence on Potential Deal
Elon Musk, the CEO of Tesla, SpaceX, and X (formerly Twitter), has not responded to the Bloomberg report. The article outlined a potential scenario where Musk’s X could acquire TikTok’s U.S. operations and integrate them into his expanding tech empire. However, there is no confirmation that Musk, TikTok, or ByteDance have held any discussions regarding such a deal.
Musk has publicly expressed opposition to banning TikTok, asserting that it would be a violation of free speech. Earlier this year, Musk posted on X that banning TikTok would be “contrary to freedom of speech and expression.”
Legal Battle Over U.S. Ban
The U.S. government has taken aggressive action to either force TikTok to sell its U.S. operations or shut down the app entirely, citing national security concerns linked to its Chinese ownership. The newly passed Protecting Americans from Foreign Adversary Controlled Applications Act mandates that ByteDance must divest its stake in TikTok by January 19 to avoid a nationwide ban.
In response, TikTok and ByteDance have filed legal challenges, arguing that the law violates the constitutional rights of American users. The U.S. Supreme Court heard TikTok’s emergency appeal on January 10, and while the justices seemed to lean toward the government’s position, the outcome remains uncertain.
China’s Resistance to a Sale
ByteDance, TikTok’s Beijing-based parent company, has not expressed interest in selling its stake to a U.S. buyer. Chinese authorities have previously indicated that they would block such a move, citing concerns over the export of proprietary technology. This stance creates significant obstacles for any potential sale, including a deal with Musk or other U.S. entities.
Bloomberg’s report suggested that Chinese officials might view Musk as a viable intermediary due to his strong business connections in China through Tesla and his close ties with former U.S. President Donald Trump. However, even if Musk were interested, any deal would face complex regulatory approval processes from both the U.S. and Chinese governments.
Trump Calls for Delay on TikTok Ban
Former President Donald Trump has urged the Supreme Court to delay the implementation of the TikTok ban. Trump proposed that his administration could negotiate a resolution that addresses national security concerns while protecting Americans’ access to the app.
During his time in office, Trump unsuccessfully attempted to force ByteDance to sell TikTok’s U.S. operations to American companies over national security fears.
Even if ByteDance were willing to entertain a sale of TikTok’s U.S. business, significant challenges remain. Analysts estimate that TikTok’s U.S. operations could be valued between $40 billion and $50 billion, making it one of the largest technology acquisitions ever. Additionally, separating TikTok’s U.S. infrastructure from ByteDance’s global operations would be a complicated and costly task.
Under the new U.S. law, platforms controlled by foreign adversaries are banned from being hosted on Apple and Google’s app stores, as well as on web hosting services. This means that TikTok can only continue operating in the U.S. if ByteDance sells its stake to a buyer from a country that is not considered a foreign adversary.
