Will Elon Musk buy TikTok? What is known about the possible sale of the Chinese application in the US | THE WORLD

Chinese officials will be evaluating a possible option that implies this Elon Musk to buy TikTok’s U.S. operations if the company doesn’t dodge a controversial ban on the short-form video app, according to people familiar with the matter, cited by Bloomberg.

Authorities in Beijing strongly prefer TikTok to remain owned by parent company ByteDance Ltd., and the company is challenging the impending ban in the U.S. Supreme Court, but on Jan. 10 the justices indicated they would likely uphold the ban.

Senior Chinese officials have already begun discussing contingency plans TikTok as part of a wide-ranging discussion about cooperation with Donald Trump’s administration, one of which includes Musk, said the people, who asked not to be identified discussing confidential discussions.

A potential high-profile deal with one of Trump’s closest allies has some appeal for the Chinese government, which is expected to have a say in whether TikTok is ultimately sold, the people said. musk spent more than $250 million to support Trump’s re-election and has been credited with playing a key role in making the government more efficient after the Republican takes office.

According to the scenario discussed by the Chinese government, X Musk would take control of TikTok US and they would run the business together, the source said. With more than 170 million users in the US, TikTok can support X’s efforts to attract advertisers. Musk has also founded a separate artificial intelligence company, xAI, which could benefit from the vast amounts of data generated from TikTok.

Musk, who has become one of Trump's closest allies, has important interests in China, where the main global production base of his company, Tesla, is located. Photo: Allison Robbert/AFP/Bloomberg

Musk, who has become one of Trump’s closest allies, has important interests in China, where the main global production base of his company, Tesla, is located. Photo: Allison Robbert/AFP/Bloomberg

Chinese officials have yet to reach a firm consensus on how to proceed, and their discussions are still preliminary, the people said. It’s unclear how much ByteDance knows about the Chinese government’s discussions and whether TikTok and Musk were involved. It’s also unclear whether Musk, TikTok and ByteDance have negotiated the terms of any potential deal.

Musk and his representatives did not respond to a request for comment. “In April, Musk said he believed TikTok should remain available in the US.”In my opinion, TikTok should not be banned in the US, even if such a ban could benefit the platform“, he wrote in X. “This goes against freedom of expression. This is not what America stands for“.

Chinese Foreign Ministry spokesman Guo Jiakun declined to comment on the story during a regular press briefing on Tuesday, referring reporters to Beijing’s previous statements on the matter. The country’s government has previously condemned US attempts to ban TikTok and forcibly sell it, calling them “economic intimidation“in”robbery“.

China’s Cyberspace Administration and China’s Ministry of Commerce, government bodies that may be involved in decisions about TikTok’s future, did not respond to requests for comment. “We cannot expect comments of pure fiction– said a representative of ByteDance.

The talks in Beijing suggest that TikTok’s fate may no longer be under ByteDance’s sole control, the people said. Chinese officials acknowledge they will face tough negotiations with the Trump administration on tariffs, export controls and other issues, and see the TikTok talks as a potential area for reconciliation, they said.

Last year, Bloomberg Intelligence analysts Mandeep Singh and Damian Reimertz estimated TikTok’s US business at between $40 billion and $50 billion. This is a considerable amount even for the richest man in the world. It’s unclear how Musk could pull off such a deal, whether it would require the sale of other stakes, or whether the US government would approve it. The company paid $44 billion for Twitter in 2022 and is still paying off big loans.

The answer is TikTok

In a comment sent to EFE, TikTok described this Tuesday as “pure fiction,” according to a Bloomberg exclusive, the possibility that Chinese authorities plan to sell it to Elon Musk if the US Supreme Court finally upholds its closure.

We cannot be expected to comment on something that is pure fiction“- said a short comment sent to EFE by a spokesperson for TikTok, one of whose headquarters is in Singapore.

The response refers to a Bloomberg exclusive published this Tuesday, which states that Chinese authorities estimate as “possible option“the acquisition by American tycoon Elon Musk, owner of X and who will be part of the administration of Donald Trump, of TikTok’s operations in the United States.

According to Bloomberg, citing sources close to the case, this possibility arises if TikTok fails to avoid a ban in the United States while waiting for the Supreme Court to decide whether to uphold a law that could close the social network in the country. unless it separates from its parent company, ByteDance, by Jan. 19, as required by law.

The regulation, approved by the US Congress in April last year by Democrats and Republicans, gave the Chinese company ByteDance nine months to find an investor from a country that is not considered an “adversary” of the United States.

American lawmakers justified their decision by saying that the platform poses a threat to national security due to the possibility of the Chinese government accessing user data.

For its part, China has repeatedly criticized “repression” against TikTok by the US, ensuring that it “scare tactics“it will end”turning against» North American country.

The shutdown of TikTok in the United States could happen just a day before Trump returns to the presidency on January 20.

Although during his first term (2017-2021), the Republican tried to ban the social network, on this occasion he asked the US Supreme Court to paralyze the entry into force of the law until he is in the presidency after promising in the campaign that “would save TikTok“.

Musk’s interests

Musk, who has become one of Trump’s closest allies, has important interests in China, where the main global production base of his company, Tesla, is located.

The mogul already defended last April that “TikTok should not be banned in the United States. (…) It would go against freedom of expression, and the United States does not protect that.”

China has a “golden share” in ByteDance, which gives it veto power over any decision.

With information from Bloomberg and EFE

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