Chinese officials are allegedly exploring the possibility of selling TikTok’s US operations to tech billionaire Elon Musk, owner of X, if the short-video platform cannot avoid a looming ban, Bloomberg reported Tuesday. However, TikTok has dismissed the claim as “pure fiction.”
Thank you for reading this post, don't forget to subscribe!According to the report, the discussions are in early stages, with Beijing officials preferring that TikTok remain under the control of its China-based parent company, ByteDance. The sale is being considered as a backup plan to comply with the 2024 Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), which mandates ByteDance to divest TikTok’s US arm by January 19, 2025, or face a ban.
Outgoing US President Joe Biden signed the act into law, citing national security concerns over potential Chinese government access to user data. TikTok, which boasts 170 million daily users in the US, has repeatedly denied these allegations.
Last week, the US Supreme Court heard arguments on the law, with justices reportedly leaning toward upholding the legislation. Bloomberg suggested one scenario involves Musk’s X taking over TikTok’s US operations, valued at $40-50 billion last year. However, it remains unclear if ByteDance, TikTok, or Musk are aware of the purported talks.
TikTok responded to the Bloomberg report by asserting it “can’t be expected to comment on pure fiction.” ByteDance has previously stated that its “golden share” arrangement with the Chinese government has no impact on TikTok’s global operations, emphasizing the company’s diverse ownership structure.
