Musk Could Purchase TikTok's US Division, Says Bloomberg
According to Bloomberg, the potential sale of TikTok to Elon Musk is perceived as a contingency plan in response to a possible ban of the app in the United States. Read Full Article at RT.com.
TroibNews 
Chinese officials are reportedly contemplating the sale of TikTok’s US operations to tech billionaire and X owner Elon Musk if the short-video app cannot evade an imminent ban in the country, as reported by Bloomberg in an article published on Tuesday, citing unnamed sources. TikTok has dismissed the claim as “pure fiction.”
According to Bloomberg, conversations are in the preliminary stages, with Beijing officials showing a preference for TikTok to remain under the auspices of its China-based parent company, ByteDance. The potential sale is being considered as a backup plan to avert a long-anticipated ban in the US.
The 2024 Protecting Americans from Foreign Adversary Controlled Applications Act mandates that ByteDance divest its US TikTok operations by January 19, 2025, or face a complete ban in the country. When signing the legislation, outgoing President Joe Biden highlighted national security concerns, despite the app having approximately 170 million daily users in the US.
The reports of Chinese officials allegedly weighing a possible sale come amid heightened scrutiny of TikTok in the US over fears that user data could be accessed by the Chinese government—a claim the company has consistently refuted.
Last week, the US Supreme Court heard arguments regarding the law that could force the sale or shutdown of TikTok, with justices seemingly inclined to uphold the legislation.
Bloomberg noted that one scenario involves Musk's social media platform X potentially taking control of TikTok’s US operations, which were estimated last year to be worth between $40 billion and $50 billion.
However, it remains uncertain how aware ByteDance or Musk are of the alleged discussions among Chinese officials about the app's sale. Additionally, there is no information regarding any discussions that may have taken place between ByteDance, TikTok, and the owner of X concerning a potential deal, the outlet added.
In response to queries about the Bloomberg report, TikTok reiterated that it “can’t be expected to comment on pure fiction.”
The Chinese government possesses a 1% stake, often referred to as a “golden share,” in a ByteDance affiliate, which allows it some influence over the company’s strategic decisions and operations. ByteDance itself is primarily owned by institutional investors, including the US-based Blackrock (60%), while employees and founders hold 20% each.
TikTok has previously stated that the government's stake is a “common arrangement” under Chinese law and “has no bearing on ByteDance’s global operations, including TikTok.”
Thomas Evans contributed to this report for TROIB News
According to Bloomberg, conversations are in the preliminary stages, with Beijing officials showing a preference for TikTok to remain under the auspices of its China-based parent company, ByteDance. The potential sale is being considered as a backup plan to avert a long-anticipated ban in the US.
The 2024 Protecting Americans from Foreign Adversary Controlled Applications Act mandates that ByteDance divest its US TikTok operations by January 19, 2025, or face a complete ban in the country. When signing the legislation, outgoing President Joe Biden highlighted national security concerns, despite the app having approximately 170 million daily users in the US.
The reports of Chinese officials allegedly weighing a possible sale come amid heightened scrutiny of TikTok in the US over fears that user data could be accessed by the Chinese government—a claim the company has consistently refuted.
Last week, the US Supreme Court heard arguments regarding the law that could force the sale or shutdown of TikTok, with justices seemingly inclined to uphold the legislation.
Bloomberg noted that one scenario involves Musk's social media platform X potentially taking control of TikTok’s US operations, which were estimated last year to be worth between $40 billion and $50 billion.
However, it remains uncertain how aware ByteDance or Musk are of the alleged discussions among Chinese officials about the app's sale. Additionally, there is no information regarding any discussions that may have taken place between ByteDance, TikTok, and the owner of X concerning a potential deal, the outlet added.
In response to queries about the Bloomberg report, TikTok reiterated that it “can’t be expected to comment on pure fiction.”
The Chinese government possesses a 1% stake, often referred to as a “golden share,” in a ByteDance affiliate, which allows it some influence over the company’s strategic decisions and operations. ByteDance itself is primarily owned by institutional investors, including the US-based Blackrock (60%), while employees and founders hold 20% each.
TikTok has previously stated that the government's stake is a “common arrangement” under Chinese law and “has no bearing on ByteDance’s global operations, including TikTok.”
Thomas Evans contributed to this report for TROIB News
