In a recent twist that sounds straight out of a corporate thriller, the American appellate court has mandated that TikTok has to sort out the sale of its U.S. operations within a mere nine months. Insider buzz suggests that if TikTok can’t dodge the looming U.S. ban, there’s a chance that the Chinese owners might just pass the baton to Elon Musk. True to its style, TikTok has coolly brushed off these rumors, stating they won’t comment on such speculative scenarios.
According to Bloomberg, citing anonymous sources, China is exploring ways to dodge the U.S. ban on TikTok’s operations, with selling it to Elon Musk being one possible strategy on the table. Despite the Chinese officials’ hopes for TikTok to remain under the control of its parent company, ByteDance, and ByteDance’s active efforts to appeal to the U.S. Supreme Court to challenge the ban, some top executives are already brainstorming contingency plans as the recent Supreme Court hearings seem to favor the ban’s enforcement.
If the cards fall right, Elon Musk’s social media platform X (formerly known as Twitter) might just scoop up and run TikTok’s US operations. This move isn’t just a quick fix to sidestep any potential bans, it’s a power play to magnify X’s presence in the ad market. And let’s be real, with TikTok’s jaw-dropping user base of over 170 million in the US alone, it’s no wonder advertisers are drooling. Plus, Musk’s AI venture, xAI, could get a serious boost from TikTok’s treasure trove of data. The synergy here could be off the charts!
However, the plan is still in the early stages of discussion. There has been no consensus reached by the Chinese counterparts yet, and currently, there’s no concrete evidence to show whether ByteDance has been involved in the internal government discussions. Whether Elon Musk is in the loop remains a mystery. When CNBC reached out to TikTok, they made it clear that they would not respond to purely speculative events.
Currently, TikTok’s operations in the U.S. are valued at a whopping $40 to $50 billion (about 312 to 390 billion Hong Kong dollars). Even for someone like Elon Musk, that’s no pocket change. However, this deal faces its fair share of hurdles, including whether it will necessitate the sale of other assets and whether it will ultimately receive the green light from the U.S. government.
Recently, Capitol Hill has been ablaze with debate over whether ByteDance should be forced to sell off its American operations or shut them down. If the ban kicks in at an undetermined date, TikTok could find itself at a major crossroads. As things heat up, TikTok’s operations in the US and the broader US-China relations are hanging by a thread. Despite ByteDance’s fervent emphasis on protecting free speech and arguing that the ban is unconstitutional, the U.S. government’s hardcore stance leaves TikTok’s fate in the American market up in the air.
