Chinese officials are reportedly considering a contingency plan that involves Elon Musk acquiring TikTok US operations if the social media app is banned in the United States. As TikTok faces mounting pressure from the US government over national security concerns, this potential deal could reshape the global tech landscape.
TikTok’s Legal Battle and Looming Ban
TikTok, owned by Chinese parent company ByteDance, is battling to overturn a ban that could take effect on 19 January 2025, just before President-elect Donald Trump assumes office. The company has taken its appeal to the US Supreme Court, arguing that the ban violates the First Amendment’s free speech protections. However, during recent hearings, justices indicated they may prioritize security concerns over free speech.
While ByteDance prefers to maintain ownership of TikTok, the ban’s looming implementation has forced the company and Chinese officials to explore alternative solutions.
Musk as a Contender
Beijing officials see Musk as a viable candidate to purchase TikTok US due to his entrepreneurial success and experience working with Chinese authorities through Tesla’s operations in Shanghai. Musk’s existing ventures—such as X (formerly Twitter) and xAI—could benefit significantly from TikTok’s massive user base of over 170 million US users, boosting ad revenue and leveraging TikTok’s data for artificial intelligence advancements.
Under one scenario, Musk’s X platform would integrate TikTok’s US operations, potentially creating a tech powerhouse. However, such a move would require approval from both the Chinese and US governments, complicating the deal further.
The Role of the Chinese Government
The Chinese government holds a “golden share” in a ByteDance affiliate, granting it influence over the company’s strategic decisions. This stake gives Beijing substantial control over whether TikTok US can be sold and ensures that any deal involving TikTok’s algorithm—its most valuable asset—requires government approval.
ByteDance maintains that the golden share only applies to its China-based subsidiary Douyin and does not impact its international operations. Despite this claim, Beijing’s export rules restrict the sale of such software technologies, adding another layer of complexity to any potential sale.
Financial Hurdles and Competing Bids
TikTok’s US operations are valued at an estimated R760 billion to R950 billion. For Musk, who spent R836 billion on X in 2022 and is still repaying loans tied to that acquisition, funding such a transaction may require selling other assets or finding external investors.
Other potential buyers have shown interest in TikTok. Billionaire Frank McCourt and investor Kevin O’Leary are part of a bid through Project Liberty, and companies like Microsoft and Oracle have previously explored similar acquisitions.
Implications for China-US Relations
The TikTok negotiations have broader geopolitical implications. Beijing sees the app as a bargaining chip in ongoing discussions with the Trump administration over tariffs, export controls, and other trade issues. Musk, whose Tesla operations in China have cultivated goodwill with Chinese officials, is uniquely positioned to influence relations between the world’s two largest economies.
The Road Ahead
Despite the uncertainty surrounding a sale, ByteDance remains focused on its legal battle to overturn the US ban. If unsuccessful, the company faces a difficult choice: sell its US operations, shut them down, or attempt to migrate users to a new app.
With the Supreme Court’s decision pending and Trump’s administration signaling openness to negotiations, the fate of TikTok US remains in limbo. Whether Musk will emerge as the app’s savior—or if another resolution will be reached—will shape the future of global tech dominance.
