Chinese officials are exploring the possibility of Elon Musk acquiring TikTok’s US operations as a contingency plan if the short-video app cannot overturn a looming ban in the United States, sources familiar with the matter revealed.
Although Beijing prefers TikTok to remain under the ownership of its parent company, ByteDance Ltd., the ongoing legal battle at the US Supreme Court has raised uncertainties. On January 10, justices hinted they might uphold the legislation banning the app, prompting discussions among senior Chinese officials about alternative solutions.
One proposal involves Musk, a key ally of former President Donald Trump, taking over TikTok’s US operations. Sources disclosed that the Chinese government sees potential benefits in such a high-profile deal. Musk, who contributed over $250 million to Trump’s re-election campaign, has been tapped to play a significant role in improving government efficiency under the new administration.
Under this scenario, Musk’s X platform (formerly Twitter) would assume control of TikTok’s US operations, integrating the businesses. With TikTok boasting over 170 million US users, the app could provide a significant boost to X’s advertising capabilities. Musk’s artificial intelligence firm, xAI, could also leverage TikTok’s vast data resources to enhance its AI developments.
Discussions within the Chinese government remain preliminary, with no definitive decisions made. It is unclear whether ByteDance or TikTok are aware of these deliberations, or if any formal negotiations with Musk have taken place. For now, ByteDance continues to contest the US ban, while all parties monitor developments closely.
