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China may allow Elon Musk to acquire TikTok’s US division

China may consider selling TikTok US to Elon Musk if the app is banned. ByteDance ownership remains preferred but uncertain.

Chinese officials are reportedly considering the possibility of Elon Musk acquiring TikTok’s United States operations if the Supreme Court upholds the law banning the app on January 19.

TikTok’s future in the US under scrutiny

Sources reveal that while China strongly prefers ByteDance to retain ownership of TikTok, discussions within the Chinese government have explored alternative strategies. Among these is a scenario where TikTok US is sold to Musk. Such a move is viewed as part of a broader plan to navigate relations with the incoming administration of former President Donald Trump, who previously advocated for restrictions on TikTok, citing security concerns.

Under this potential deal, Musk’s X (formerly Twitter) could absorb TikTok’s US operations, bringing its vast user base of 170 million Americans and access to billions in advertising revenue into his portfolio. This development could significantly enhance X’s presence in the social media landscape, which has increasingly shifted toward short-form video content.

However, TikTok’s spokesperson has dismissed these claims, labeling them “pure fiction” in a statement to Variety. Despite this, the report suggests the discussions highlight the complexity of TikTok’s future, given ByteDance’s ties to Beijing.

Concerns about influence and transparency

The report also raises questions about how much ByteDance or TikTok leadership is aware of China’s discussions. Speculation regarding Beijing’s alleged influence over TikTok has long been contentious, fuelling bipartisan concerns over data privacy and national security in the United States.

While the details remain uncertain, this revelation underscores the high stakes for TikTok, which has become one of the most popular apps among young Americans. If the Supreme Court enforces the ban, ByteDance could face significant pressure to sell its US operations or risk losing access to one of its largest markets.

The geopolitical tensions between the United States and China further complicate the situation, particularly over technology and trade. Any sale of TikTok US to Musk would likely face intense scrutiny, not just from Chinese officials but also American regulators, who have reservations about data security and foreign ownership.

The next chapter for TikTok

As the January 19 Supreme Court decision approaches, the future of TikTok in the United States remains uncertain. While Chinese officials appear open to discussing drastic measures like a sale to Musk, the outcome will depend on various factors, including legal challenges, political negotiations, and market conditions.

TikTok’s American users and its parent company, ByteDance, are waiting to see how this evolving situation unfolds.

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