Chinese officials are reportedly exploring contingency plans involving Elon Musk acquiring TikTok’s US operations if the short-video app fails to overturn a looming ban, according to sources familiar with the matter. While Beijing prefers TikTok to remain under ByteDance Ltd.’s ownership, the company’s appeal to the US Supreme Court faces uncertainty following a hearing on January 10.
One proposal discussed involves Musk’s X (formerly Twitter) taking over TikTok’s US operations, merging the two platforms to boost advertiser engagement. TikTok, with over 170 million US users, could complement X’s ambitions. Musk’s separate AI company, xAI, might also benefit from TikTok’s cutting-edge algorithms.
The Chinese government, which holds a “golden share” in a ByteDance affiliate, has significant influence over the company’s strategy. Beijing’s export rules restrict the sale of TikTok’s valuable recommendation algorithms, further complicating any deal.
TikTok’s US operations are valued at $40-50 billion, raising questions about how Musk, who is still repaying loans from his $44 billion Twitter acquisition, might finance such a transaction. Musk previously expressed his belief that TikTok should remain accessible in the US, despite the potential benefits to X if banned.
The discussions signal TikTok’s future may extend beyond ByteDance’s control, as Beijing considers the platform a potential bargaining chip amid broader negotiations with the US.