China mulls potential sale of TikTok US to Musk, Bloomberg News reports

China mulls potential sale of TikTok US to Musk, Bloomberg News reports

Chinese officials are reportedly in initial discussions about the possibility of selling TikTok's U.S. operations to billionaire Elon Musk, should the short-video platform face an impending ban in the United States, according to Bloomberg News. Beijing officials would prefer that TikTok remain under the control of its parent company, ByteDance. However, the report suggests that the future of the app in the U.S. may no longer be solely in ByteDance’s hands. 

The U.S. operations of TikTok could either be sold through a competitive process or through a government arrangement, according to sources. TikTok's ownership structure is complicated by China’s "golden share" in ByteDance, which some members of Congress claim provides the Chinese government influence over TikTok's operations.

Under one potential scenario, Musk’s platform X could take control of TikTok U.S. and manage the business together, though no final decisions have been made. TikTok has responded to the report, dismissing it as “pure fiction.” It remains unclear whether ByteDance is aware of these discussions, or if any talks between ByteDance, TikTok, and Musk have taken place.

In the meantime, the U.S. Supreme Court appears to be leaning toward upholding a law that would force TikTok’s sale or result in a ban by January 19, due to national security concerns related to the app’s ties to China.

Chinese officials are reportedly exploring a potential option to sell TikTok's U.S. operations to billionaire Elon Musk in the event that the short-video app cannot avoid a looming ban, according to a Bloomberg News report. The discussions are still in the early stages, with Beijing officials preferring that TikTok stays under the control of its parent company, ByteDance. However, the future of TikTok in the United States is looking increasingly uncertain, and its U.S. operations might no longer be fully under ByteDance’s control.

TikTok’s potential sale could either be carried out through a competitive bidding process or through an arrangement facilitated by the U.S. government. This possibility suggests that TikTok’s U.S. operations could be sold to another entity, as opposed to ByteDance retaining full ownership, particularly given the mounting pressure from U.S. lawmakers and regulators. China’s "golden share" in ByteDance, which grants the Chinese government certain control over the company, has been a point of contention, with several U.S. lawmakers raising concerns that this gives China undue influence over TikTok.

Under one scenario, Elon Musk’s social media platform X could assume control of TikTok’s U.S. business, with both companies running the operations together. However, this potential deal has not yet materialized, and Chinese officials have yet to reach a consensus on the way forward. A TikTok spokesperson denied the Bloomberg report, labeling it as “pure fiction.”

The precise extent of ByteDance’s knowledge about these discussions, or the level of involvement of Musk or TikTok in any negotiations, remains unclear. Furthermore, the U.S. government and regulatory bodies have been pushing for TikTok’s divestment due to national security concerns over its data practices, particularly fears of data being shared with the Chinese government. TikTok has previously asserted that the Chinese government’s involvement does not impact the app’s global operations.

Meanwhile, the U.S. Supreme Court appears to be on the verge of making a ruling on a law that would force ByteDance to sell TikTok’s U.S. operations or face a nationwide ban. The law was enacted over concerns that TikTok could pose a national security threat by potentially sharing user data with the Chinese government. If the Supreme Court upholds the law, TikTok would be removed from U.S. app stores by January 19, and its services would degrade, eventually ceasing to function.