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Chinese officials are reportedly considering selling TikTok's US operations to Elon Musk as a contingency plan to prevent an impending ban. The preliminary discussions, first reported by Bloomberg News, emerge as the Supreme Court weighs legislation that could force ByteDance to divest TikTok's US business by January 19, 2025.
The proposed arrangement would see Musk's X platform potentially taking control of TikTok's US operations through a joint management structure. However, sources familiar with the matter indicate that Beijing officials still prefer ByteDance to maintain control of the popular short-video app. The discussions remain exploratory, with no consensus reached on how to proceed.
TikTok's response to these reports has been dismissive, with a company spokesperson stating, "We can't be expected to comment on pure fiction." The situation is further complicated by ByteDance's unclear involvement in these discussions, as reports suggest the company may not be fully aware of the ongoing talks.
The timing of these discussions coincides with significant political developments. President-elect Donald Trump, who previously supported a TikTok ban during his first administration, has recently shifted his stance. This change followed a February meeting with Jeff Yass, a Republican megadonor and significant ByteDance investor, suggesting potential political maneuvering behind the scenes.
The Supreme Court's recent hearings have indicated a likelihood of upholding the ban, which has accelerated Beijing's search for alternatives. The Chinese government's involvement is particularly noteworthy given its "golden share" in ByteDance, which several members of Congress argue grants Beijing significant control over TikTok's operations.
The proposed January 19 deadline looms large, as it would penalize third-party Internet service providers for supporting TikTok's US operations. However, Trump has urged the Supreme Court to delay implementing the ban, advocating for time to find a "political resolution" when his second term begins on January 20.
