The Chinese government is reportedly considering selling TikTok’s U.S. operations to billionaire Elon Musk if the U.S. Supreme Court upholds a looming ban on the social media platform.
Sources familiar with the matter reveal that Chinese officials prefer TikTok to remain under its parent company, ByteDance Ltd., but discussions are underway to prepare for alternative scenarios. The platform faces a potential ban on January 19 over national security concerns, with ByteDance appealing the decision in court.
During a recent hearing, justices indicate a possible ruling in favor of the ban, prompting Chinese authorities to weigh contingency plans, including a sale to Musk, as part of broader strategies for managing relations with the incoming U.S. administration.
If Musk’s company X (formerly Twitter) acquires TikTok U.S., it would gain control of the app’s 170 million American users and access to substantial advertising revenue. However, reports suggest ByteDance may not be fully aware of Beijing’s deliberations concerning the sale.
A recently enacted U.S. law requires ByteDance to divest from TikTok or face removal from the app marketplace on national security grounds. TikTok contends that the mandate violates free speech protections and is seeking a delay in its implementation.
If enforced, the ban would block Apple and Google from offering TikTok for download by new users, while existing users would gradually lose app functionality due to the lack of updates and support.
President-elect Donald Trump, set to take office on January 20, previously called for a delay to explore potential political solutions to the issue. The unfolding legal and diplomatic developments will determine TikTok’s future in the U.S. market.
