TikTok Rejects Rumors of Potential Sale to Elon Musk Ahead of U.S. Ban
TikTok has dismissed claims that China might approve the sale of its U.S. operations to Elon Musk as "pure fiction," despite mounting speculation ahead of a potential U.S. ban on the platform. Reports from Bloomberg and The Wall Street Journal suggested Chinese officials were debating contingency plans, including selling TikTok’s U.S. assets to Musk to avoid the ban, which could take effect on January 19th.
Chinese authorities reportedly prefer that ByteDance, TikTok's Beijing-based parent company, retains ownership of the platform. However, discussions about alternative solutions have surfaced, with one scenario involving Musk’s social media platform X taking over TikTok’s U.S. operations. The move could integrate TikTok’s 170 million U.S. users into X, potentially boosting advertising revenue and benefiting Musk's artificial intelligence ventures through access to TikTok's data.
TikTok has maintained its stance against selling its U.S. operations, stating, “We can’t be expected to comment on pure fiction,” when asked about the rumours. The company continues to fight the looming ban through legal challenges, arguing that forcing a sale would violate the First Amendment rights of its users.
The U.S. Supreme Court recently heard oral arguments on the constitutionality of the Protecting Americans from Foreign Adversary Controlled Applications Act, which mandates TikTok’s divestment from ByteDance. While the Biden administration argues that TikTok’s Chinese ownership poses a severe national security risk, the platform denies allegations of being influenced by the Chinese Communist Party or being used as spyware.
Adding to the uncertainty, former President Donald Trump, who is set to return to office on January 20th, has expressed opposition to banning TikTok. Trump’s legal team has urged the Supreme Court to delay its decision, arguing that the issue should be resolved politically once he takes office. Reports also revealed Trump met with TikTok CEO Shou Zi Chew recently, signaling a possible attempt to negotiate a solution.
Meanwhile, investor Kevin O’Leary has partnered with Project Liberty founder Frank McCourt in an effort to acquire TikTok’s U.S. assets. Their proposed plan includes stripping out alleged “Chinese spyware” and prioritizing user data privacy to regain trust and expand TikTok's global user base.
As the January 19th deadline approaches, all eyes are on the Supreme Court and the Biden administration to decide TikTok’s fate in the U.S. While discussions about potential buyers and political maneuvers continue, TikTok remains steadfast in its commitment to challenging the ban and retaining control of its operations.
