China evaluating sale of TikTok US to Elon Musk: Bloomberg
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The news: Chinese officials are weighing up a potential option that involves Elon Musk acquiring TikTok's US operations if the company fails to defend a possible ban on the video app, Bloomberg reported, sourcing people familiar with the matter.
The context: US Supreme Court justices signalled last week that they are likely to uphold the proposed ban, as TikTok appeals the decision.
Senior Chinese officials have started discussing contingency plans for TikTok — owned by parent company ByteDance — as part of a wider strategy on how to work with president-elect Donald Trump.
Under one scenario, Musk-owned X would take control of TikTok US and run the business together. TikTok could support X's efforts to attract advertisers and provide data for Musk's artificial intelligence company xAI.
The Chinese government, which is expected to have some say over whether TikTok is sold, has yet to reach agreement on any move and discussions are still preliminary.
In April 2024, Musk posted on X that he thought TikTok should remain available in the US. However, a majority of the Supreme Court justices have suggested the security concerns take priority over free speech. Trump, who takes office on 20 January, has sought to delay the TikTok ban, which takes effect on 19 January, so he can work on the negotiations.
The source: Bloomberg
