TikTok US may go to Elon Musk as China explores potential sale: Report

Chinese officials are considering selling TikTok’s United States operations to billionaire Elon Musk if the app is unable to avoid an impending ban, reported Bloomberg.

The report suggests that Chinese authorities would rather keep TikTok under the control of its parent company, ByteDance. However, mounting pressure from US lawmakers over national security concerns may leave no option but to sell TikTok’s US division. One potential scenario involves Elon Musk’s social media platform, X, acquiring TikTok US and running it jointly with ByteDance. The report notes that no final decision has been made, and discussions remain inconclusive.

ByteDance has consistently maintained that China’s stake in the company, often referred to as a “golden share,” has no influence over TikTok’s global operations outside of China. However, members of the US Congress have argued otherwise, claiming the “golden share” gives Beijing undue control, as per the report.

A TikTok spokesperson dismissed the Bloomberg report, saying, “We can’t be expected to comment on pure fiction.” It is unclear whether ByteDance or Elon Musk has been involved in any formal talks about a potential deal.

TikTok has been under scrutiny for years over concerns that user data could be accessed by the Chinese government. The company has repeatedly denied these allegations, stating that data from US users is stored securely within the United States.

The backdrop to these discussions is a US Supreme Court review of a law that could lead to a ban or forced sale of TikTok’s US operations by 19 January. US authorities argue that TikTok poses a national security risk due to its ties to China. China’s Cyberspace Administration and Ministry of Commerce, along with representatives from Elon Musk’s companies, have yet to comment on the Bloomberg report.