Elon Musk Considering Acquisition of TikTok US Amid Potential Ban, Report Suggests
A new report from Bloomberg suggests that Chinese officials are exploring the possibility of Elon Musk taking over TikTok’s US operations if the popular social media platform fails to avoid a ban in the country. While China would prefer to retain control of TikTok under its parent company, ByteDance, government officials are reportedly discussing backup plans, particularly in light of the approaching deadline set by the US government.
TikTok is currently appealing the potential ban in the US, which could force the company to either sell or face a ban by January 19. Despite this, the US Supreme Court has shown signs of supporting the law that mandates a sale.
The Chinese government, it seems, is considering the scenario where Musk could buy TikTok US and integrate it with X, the social media platform he acquired in 2022. TikTok’s spokesperson dismissed the report, calling it “pure fiction.”
Why Would Musk Be Interested in Acquiring TikTok?
Musk’s potential interest in TikTok could be driven by its substantial user base—170 million people in the US alone. This could significantly enhance Musk’s standing with advertisers, especially as X (formerly Twitter) has struggled to retain advertisers since his acquisition. Many advertisers have fled X due to the changes Musk implemented after taking control in late 2022. In response, Musk has focused on boosting revenue through X’s subscription services.
Additionally, Musk’s AI company, xAI, could benefit from the vast amount of data TikTok generates. xAI’s Grok chatbot already uses data from X to provide real-time search results, and TikTok’s data could further enhance this functionality.
Lawmakers Push for Delay in TikTok Ban
Two Democratic lawmakers have urged President Joe Biden and Congress to extend the January 19 deadline for TikTok’s sale or ban, allowing 170 million Americans to continue using the app. If President Biden certifies that ByteDance is making substantial progress towards selling TikTok, the deadline could be extended by 90 days. However, it seems unlikely that ByteDance will meet this requirement.
Senator Markey expressed concern over the consequences of a ban, saying it would silence millions of Americans who depend on the app for social connections and economic opportunities.
Why Is TikTok Facing a Ban in the US?
A law passed by Congress in April, and signed by President Biden, mandates that TikTok must sell its US operations by January 19 or face a ban. The law also prohibits ByteDance from controlling TikTok’s core technology, which personalizes video content for users—one of the key factors driving its popularity, especially among young people.
The US government has raised concerns about the “grave national security threats” posed by Chinese ownership of TikTok, warning that the app could be used to collect sensitive data or conduct covert foreign influence operations.
President-elect Donald Trump has also filed a request with the Supreme Court, seeking to pause the law and allow time for a negotiated resolution after his inauguration. While Trump has not taken a definitive stance on the law’s constitutionality, he has acknowledged concerns regarding its impact on free speech. During his first term, Trump suggested that a sale of TikTok to a US company could benefit the federal government financially.
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