Bloomberg reports that if TikTok was banned in the United States the popular app might consider selling it to Elon Musk.
Bloomberg reported that while Chinese officials prefer TikTok to remain owned by ByteDance Ltd., TikTok is facing a Jan. 19 ban, and arguments before the Supreme Court last week made it appear unlikely the high court would intervene.
Bloomberg reported that Chinese officials believed involving Musk could help them curry favor with Donald Trump’s incoming administration. Musk spent $250m to elect Trump and was appointed to lead a group focused on government effectiveness by Trump.
Bloomberg reported that one scenario would be for X (formerly Twitter) to take over TikTok U.S., and for the two companies to run together.
Bloomberg reported that the discussions are still in their preliminary stages and it’s unclear how much ByteDance is aware of them or whether TikTok, Musk, or ByteDance has been involved.
Musk has not responded to Bloomberg’s request for comment, but he previously opposed the TikTok ban. Bloomberg also received no response from representatives of ByteDance and TikTok as well as The Cyberspace Administration of China, China’s Ministry of Commerce, and the Cyberspace Administration of China, which could have a role in deciding TikTok’s future.
Bloomberg estimated TikTok U.S. operations to be worth between $40 and $50 billion. Any sale of the app would require approval from the Chinese government. Musk, the richest man in the world, paid 44 billion dollars for Twitter in 2022.
Trump has pledged to save TikTok from the ban. Kevin O’Leary, “Shark Tank’s”, and former Dodgers owner Frank McCourt also made a bid for the app.
Bloomberg reported that TikTok had also discussed moving U.S. users to a similar application with a different brand. Bloomberg reported that executives would rather continue fighting in the U.S. than sell TikTok U.S.
Musk has established positive relationships with Chinese officials and will open a Tesla Factory in Shanghai in 2019.
