China Is Selling TikTok USA To Elon Musk? What We Know So Far

TikTok, the wildly popular short-video app with over 170 million US users, is on the brink of a major upheaval. Facing a potential ban in the United States over national security concerns, its Chinese parent company ByteDance Ltd. is battling to retain control. However, Chinese officials are considering a surprising backup plan: selling TikTok’s US operations to Elon Musk , according to a Bloomberg report citing unnamed sources.

The app’s future depends heavily on a pending US Supreme Court decision. On January 10, the justices signaled they might uphold legislation that could force ByteDance to sell or shut down TikTok’s US operations. As ByteDance fights to overturn this ruling, Chinese officials are weighing their options in case the court’s decision goes against the company.

Musk as a Contingency Plan
One intriguing option under discussion involves Elon Musk, the world’s richest person and the owner of X (formerly Twitter). According to Bloomberg’s sources, Beijing officials see Musk as a favorable candidate to acquire TikTok’s US business. Musk’s reputation as a successful entrepreneur, coupled with his strong business ties to China through Tesla , makes him a potentially strategic ally for the Chinese government.

Under one scenario, Musk’s social media platform X would take over TikTok’s US operations. This could benefit Musk’s ambitions to grow X by leveraging TikTok’s massive user base and valuable data. Additionally, Musk’s artificial intelligence company, xAI, could capitalize on TikTok’s recommendation algorithms, which are central to its success.

However, this plan is still in its early stages, and it’s unclear if Musk or ByteDance are directly involved in these discussions. “In my opinion, TikTok should not be banned in the USA, even though such a ban may benefit the X platform,” Musk posted on X in April. “Doing so would be contrary to freedom of speech and expression.”

Geopolitical and Legal Complexities
As mentioned in the report by Bloomberg, Selling TikTok’s US operations would be far from straightforward. The Chinese government holds a "golden share" in a ByteDance affiliate, giving it significant influence over company decisions. Additionally, Chinese export laws prevent the sale of critical software algorithms, like TikTok’s recommendation engine, without government approval.

This means Beijing would have a major say in any potential deal. ByteDance’s leaders, however, have expressed a preference for continuing their legal fight to avoid selling TikTok. They argue that the legislation requiring a sale violates the US Constitution’s First Amendment, which protects free speech. Lawyers for TikTok have described the process of spinning off its US operations as “extraordinarily difficult” due to the app’s integrated systems and global user base.

Adding to the complexity, President-elect Donald Trump has indicated he may delay the ban, which is set to take effect on January 19, to allow more time for negotiations. Trump, who takes office on January 20, has expressed interest in “saving” TikTok and exploring potential solutions, as mentioned in the report by Bloomberg.

China’s Strategic Calculations
For Beijing, selling TikTok’s US operations to Musk could serve as a strategic move in broader negotiations with the US. According to Bloomberg’s sources, Chinese officials view the TikTok issue as part of a larger geopolitical chess game that includes tariffs, export controls, and trade relations.

A high-profile deal with Musk, a figure known for his connections to Trump and experience dealing with Chinese authorities through Tesla, might provide a unique opportunity for reconciliation. Musk’s Tesla factory in Shanghai, built in 2019, has earned him goodwill from Chinese officials and strengthened his reputation as a trusted business partner.

The Financial Hurdle
TikTok’s US operations are estimated to be worth $40 billion to $50 billion, a significant sum even for Musk. The billionaire paid $44 billion for Twitter in 2022 and is still paying off substantial loans from that deal. It remains unclear how Musk would finance another acquisition of this magnitude or whether he would need to sell other holdings to fund the purchase.
Bloomberg’s analysts Mandeep Singh and Damian Reimertz have noted that such a transaction would require careful planning and likely face scrutiny from both US and Chinese regulators.

Other Contenders for TikTok
Musk isn’t the only potential buyer. Project Liberty, a group led by billionaire Frank McCourt and "Shark Tank" investor Kevin O’Leary, has also expressed interest in acquiring TikTok’s US operations. Microsoft and Oracle, which have pursued deals with TikTok in the past, could re-enter the bidding process if a sale becomes inevitable.

Meanwhile, ByteDance’s lawyers have suggested that an alternative solution could involve rebranding TikTok for US users or creating a similar app to sidestep the ban. However, the effectiveness of such a strategy remains uncertain, as mentioned in the report by Bloomberg.

The Road Ahead
As the Supreme Court deliberates TikTok’s fate, the app’s future remains shrouded in uncertainty. Whether through a high-profile sale to Musk or another solution, the outcome will likely have far-reaching implications for US-China relations, global tech competition, and the social media landscape.

Chinese officials’ discussions underscore the high stakes involved in TikTok’s operations, both as a cultural phenomenon and a geopolitical flashpoint. While Beijing and ByteDance hope to retain control, the evolving legal and political landscape may leave them with little choice but to explore alternatives.

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