China considers selling TikTok assets to Elon Musk
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Chinese officials are considering the option of transferring TikTok's American subsidiaries to Elon Musk's ownership. This may happen if the company fails to avoid a ban on the app in the United States.
It is reported by Bloomberg.
Elon Musk may receive TikTok assets from China
China insists on keeping TikTok under the ownership of ByteDance Ltd, but according to sources, officials in Beijing are already discussing backup plans. In particular, the possibility of working with Elon Musk is being considered in light of ByteDance's appeal to the U.S. Supreme Court, where the justices made it clear on January 10 that they could uphold the ban.
One option is for Musk's company X (formerly Twitter) to take control of TikTok in the US, which would allow the two companies to merge. TikTok, which has more than 170 million users in the United States, could become an important asset in attracting advertisers and developing the artificial intelligence created by Musk's xAI company.
Sources note that no final decisions have been made by Chinese officials. It is also not known whether ByteDance, TikTok or Musk have discussed the issue directly. Representatives for Musk and ByteDance did not comment on the matter.
The value of TikTok's U.S. business is estimated at $40-50 billion, a significant amount of money even for the world's richest man. The sale may also face legal and regulatory hurdles, as China has the right to approve the export of technology, including TikTok's recommendation algorithm.
As an entrepreneur with experience working with the Chinese government through his Tesla business, Elon Musk could become an important figure in the negotiations between the two countries. Beijing sees the TikTok negotiations as a potential opportunity to ease tensions in trade relations with the United States.
TikTok's lawyers argue that the U.S. law requiring the sale or closure of TikTok due to a threat to national security violates the First Amendment. However, the Supreme Court could rule in favor of the ban. President Donald Trump has said he wants to "save" TikTok, and there is speculation that he may take steps to avoid a last-minute ban.
As a reminder, the wealth of the world's billionaires, including Elon Musk, has reached $10 trillion in total capital. The profits of eight tech companies are part of this $1.5 trillion increase.
We also wrote that US President-elect Donald Trump filed a request with the Supreme Court to postpone the sale of TikTok until January 19, 2025. He emphasized that his administration would have enough time and resources to resolve the situation.
