After Twitter, will Elon Musk buy TikTok? US ban threat could lead to new owner of US business

Chinese officials are reportedly considering a contingency plan that could involve Elon Musk acquiring TikTok's US operations if the app faces a ban in the United States. According to a report by Bloomberg, discussions are in early stages, with no concrete decisions made yet.

This development follows US legislation requiring ByteDance, TikTok's parent company, to sell its US business to a non-Chinese entity or cease operations, citing national security concerns. TikTok has appealed to the US Supreme Court, but indications suggest the justices may uphold the ban.

Elon Musk, CEO of Tesla and owner of X (formerly Twitter), has emerged as a possible buyer for TikTok's US business. Sources cited in the report suggest Musk's X platform could take over TikTok's US operations, potentially boosting X's advertising efforts and complementing Musk's AI company, xAI, with TikTok's user data. However, there is no indication of direct talks between Musk and ByteDance, and neither party has commented on the speculation.

Chinese officials reportedly prefer ByteDance to retain control of TikTok but are exploring alternatives due to US pressure. Beijing holds a "golden share" in a ByteDance affiliate, giving it some influence over the company. Any sale would require Chinese government approval due to strict export rules on software algorithms, including TikTok's content recommendation engine.

TikTok's US operations are estimated to be worth $40–50 billion, a significant amount even for Musk, who spent $44 billion on acquiring Twitter in 2022. It remains unclear how Musk would fund a TikTok acquisition or if US regulators would permit it.

TikTok has become a focal point in US-China tensions, with Washington concerned about user data security and potential Chinese government influence. ByteDance argues that the legislation mandating a sale violates free speech protections, but the Supreme Court seems to prioritise national security concerns.

Selling TikTok's US operations would be complex, requiring ByteDance to navigate shareholder interests in both China and the US, comply with China's export restrictions, and find a buyer acceptable to the US government. Other potential buyers like Microsoft and Oracle have been mentioned, but logistical and legal challenges could take years to resolve.

Elon Musk's business dealings make him an influential figure in US-China relations. His company Tesla operates its largest factory in Shanghai, building goodwill with Chinese officials, while Musk has criticised some US trade policies on China.

As it stands, TikTok's future in the US is uncertain. The Supreme Court has yet to issue a final decision, and the Biden administration has delayed enforcing the ban to allow further negotiations. ByteDance remains focused on its legal battle to prevent a forced sale.

Whether or not Musk steps in, TikTok's story is far from over. With over 170 million users in the US, the app is a cultural phenomenon, but its fate depends on complex geopolitical and legal decisions. For Musk, it could be another high-stakes gamble; for ByteDance, it's a fight to retain its valuable global asset.