The Chinese government is considering selling TikTok’s US operations to Elon Musk, Bloomberg first reported on January 13. This contingency plan is one of several options being debated as ByteDance, TikTok’s parent company, faces a looming January 19 deadline to divest its US business or face an outright ban.
The report highlights that the plan is still in its early stages, with Chinese officials yet to reach a decision. It remains unclear whether ByteDance, TikTok, or Musk have been directly involved in discussions. A TikTok spokesperson declined to comment when contacted by Bloomberg, dismissing the report as “pure fiction,” while X did not respond to the media outlet’s requests for clarification.
This development adds a new dimension to the ongoing TikTok saga, which has seen US lawmakers and courts intensify scrutiny of the app due to concerns over national security and data privacy.
How TikTok got here
TikTok’s legal challenges began in April 2024, when US President Joe Biden signed bipartisan legislation requiring ByteDance to divest TikTok’s US operations to mitigate national security risks. The US government has argued that ByteDance’s control leaves TikTok vulnerable to Chinese intelligence laws, which could compel data sharing with Beijing. Critics have also warned that TikTok’s algorithm could be exploited to manipulate public opinion.
On January 10, the US Supreme Court heard oral arguments about TikTok’s future, with justices raising pointed questions about ByteDance’s ownership. Their inquiries suggested an inclination to uphold the divest-or-ban law. If enforced, the law would prohibit app stores and internet providers from supporting TikTok, rendering the platform effectively inaccessible in the US.
Adding complexity, President-elect Donald Trump has requested the Supreme Court delay the law’s enforcement, arguing that the timeline leaves his administration no room to pursue a “political resolution.” Trump’s team has proposed alternatives, such as a negotiated sale, to address national security concerns while keeping TikTok operational in the US.
Musk’s fit as a buyer
Elon Musk’s potential role in TikTok’s future raises questions about his suitability as a buyer and the broader implications for the platform. Musk has experience managing large-scale social media operations through X, though his leadership has been polarizing. While critics point to erratic decision-making and controversial changes at X, Musk’s willingness to take bold risks and make transformative decisions could align with TikTok’s needs in the face of intense scrutiny.
TikTok’s massive user base and data collection capabilities align with Musk’s ambitions in artificial intelligence. His artificial intelligence company, xAI, could benefit significantly from TikTok’s vast datasets, enhancing its AI model development. Musk’s public opposition to banning TikTok, framed as a matter of free speech, further positions him as a potential buyer who might bridge divides in the current debate.
Additionally, Musk’s rapport with Chinese officials, fostered through Tesla’s successful operations in Shanghai, could aid in navigating the geopolitical sensitivities surrounding TikTok. However, the financial feasibility of such a purchase remains uncertain. Bloomberg analyst estimates place the valuation of TikTok’s US operations at USD 40–50 billion, and Musk would likely require external financing to proceed, given the debt burden from his USD 44 billion acquisition of X.
The Chinese government’s consideration of Musk as a buyer reflects the urgency of complying with US requirements while preserving ByteDance’s interests. Bloomberg claims that China holds a golden share in a ByteDance affiliate, giving it influence over strategic decisions, including any sale involving TikTok’s proprietary algorithm. Any such deal would also face intense scrutiny from US regulators, who would evaluate Musk’s capacity to address national security concerns.
As the January 19 deadline approaches, ByteDance, TikTok, and the Chinese government face critical decisions. Alternatives, such as a negotiated pause in enforcement or a sale to another buyer, remain on the table. Other potential buyers, including Frank McCourt and Kevin O’Leary, have also expressed interest.