Chinese officials are exploring whether or not to sell TikTok to Elon Musk, according to reporting by Bloomberg.
As the Biden administration prepares to ban TikTok if they are not sold, China may aim to leverage ownership of the platform in trade negotiations, particularly regarding American-imposed tariffs, per The Wall Street Journal.
Why would ByteDance sell TikTok?
ByteDance, TikTok’s parent company, was founded by Chinese owners and is headquartered in Beijing. As the Deseret News previously reported, American officials worry that China requires ByteDance to share user information with the Chinese government.
Though ByteDance has denied such allegations — stating that they have “never, and would never, share U.S. user data with the Chinese government,” per Reuters — the Supreme Court appeared skeptical about the arguments made by TikTok’s lawyers, according to Forbes.
The proposed ban could take effect as early as January 19.
For his part, President-elect Donald Trump, has asked the Supreme Court to postpone their decision until after he takes office, per Forbes. He campaigned on a promise to retain TikTok for the millions of Americans who use the platform.
Why Elon Musk?
Musk’s emergence as a potential buyer stems in part from his status as a “trusted non-Chinese party,” according to the Wall Street Journal.
Chinese officials may trust Musk because he has met with many of their top leaders, runs a Tesla factory in Shanghai and markets his products in China.
Not only may the Chinese government trust Musk, but transferring TikTok ownership to him could further magnify his national and global influence. Trump has already made him his “efficiency czar,” tasking him with federal budget cuts, and Musk has appeared with Trump on multiple international diplomatic calls, per The Hill.
What would TikTok look like under Elon Musk?
Musk bought X, then called Twitter, back in 2022. According to NPR, his takeover involved laying off or firing 75% of employees, removing bans on speech and a drop in more than half its value.
If TikTok sells to Musk, then its future may look similar to X’s. However, TikTok’s distinct characteristics, including its younger user base and its entertainment-focused content, could result in a different management approach.