TikTok ban imminent, Chinese government considering Elon Musk's intervention to buy?

According to Bloomberg's report citing anonymous sources, Chinese officials are considering a possible option where the world's richest man, Elon Musk, may acquire TikTok's US business if it fails to resist the US court ban.

TikTok ban imminent, could Musk make an appearance?

The US government is concerned about the relationship between ByteDance, the parent company of TikTok, and the Chinese government, and has requested that ByteDance sell TikTok to a US buyer by January 19, 2025, otherwise it will be banned. The company is appealing to the US Supreme Court to challenge the impending ban. However, judges indicated during the January 10th hearing that they may uphold the ban. Insiders say that Chinese officials have already begun discussing TikTok's contingency plan, which is part of a broader discussion on how to cooperate with the Trump administration and involves the richest man, Musk.

Elon Musk spent over $250 million supporting Trump's re-election and was appointed as the leader of the government's efficiency department. In a scenario being discussed by the Chinese government, Musk's X (formerly known as Twitter) would control TikTok US and jointly operate the business. TikTok has over 170 million users in the United States, which can help X attract advertisers. Musk also established an independent artificial intelligence company called xAI, which can benefit from the large amount of data generated by TikTok.

Musk once tweeted in April: 'I believe that TikTok should not be banned in the United States, even though such a ban may benefit X platform. Doing so would violate freedom of speech and should not be the position of the United States.'

Bloomberg analysts estimated last year that TikTok's business in the United States is valued at around 40 to 50 billion US dollars. Even for the world's richest person, it is still a huge sum. It is still unclear how Musk will complete such a transaction, whether he needs to sell other shares, or whether the US government will approve it. In 2022, he spent 44 billion US dollars to acquire Twitter, and is currently repaying a large amount of loans.

Frank McCourt and Kevin O’Leary are also interested in bidding

On January 20, Trump, who is about to take office, tried to delay the TikTok ban. He once said that he wanted to "save" the application, and some speculated that he might take action at the last minute to circumvent the ban.

It is currently unclear whether TikTok in the United States will be sold in the competition or arranged for sale by the Chinese government. Billionaire Frank McCourt and Shark Tank investor Kevin O’Leary have expressed interest in the acquisition of TikTok, with O’Leary saying that he has discussed the matter with Trump.

(Sharks smell blood and enter the market: Shark Tank angel investor Kevin O'Leary prepares to acquire TikTok)

As the world's richest man, Musk has business spanning China and the United States. In 2019, Tesla established a huge factory in Shanghai and expanded it to become the company's largest production base. Despite fierce local competition, this helped Tesla expand its market share in China and establish good relations with government officials. If TikTok is sold under the arrangement of the Chinese government, Musk's role may be even more important.

This article TikTok ban imminent, Chinese government considering acquisition by Musk? First appeared on Chain News ABMedia.