Elon Musk to buy TikTok US? TikTok says reports of sale are pure fiction

As TikTok is facing the risk of a ban in the US with the deadline set for January 19, rumours have reached a fever pitch suggest that Elon Musk is in the mix to buy TikTok US operations. TikTok, however, has dismissed the rumours.

In Short

• Elon Musk rumored as potential TikTok US buyer, TikTok denies
• US concerns over ByteDance ties to China, TikTok faces ban threat
• Deadline set for ByteDance to sell TikTok US by January 19

Speculation over the future of TikTok’s US operations has reached a fever pitch, with reports suggesting Elon Musk is being considered as a potential buyer. However, TikTok has vehemently dismissed these claims, calling them “pure fiction.”

A Bloomberg report on Monday revealed that Chinese officials are in preliminary discussions about selling TikTok’s US arm to Musk, should the app face an imminent ban. The proposed move could see Musk’s social media platform X take control of TikTok’s operations in the country, integrating its 170 million US users with X’s extensive advertising infrastructure. The report valued such a deal at between $40 billion and $50 billion.

This development follows growing national security concerns in the United States over TikTok’s parent company, ByteDance, and its ties to the Chinese government. ByteDance’s structure includes a "golden share" held by China, which grants Beijing significant influence. Several US lawmakers argue that this connection poses a risk to data privacy and security, fueling calls for divestment or a nationwide ban.

TikTok’s future in the US now hinges on a January 19 deadline, by which ByteDance must either sell the app’s US operations or cease its services in the country. Failure to comply would mean users losing access to updates and security patches, even as the app remains functional on existing devices.

Despite the urgency, TikTok has categorically denied any talks involving Musk, ByteDance, or the Chinese government regarding a potential sale. “We can’t be expected to comment on pure fiction,” a TikTok spokesperson said. ByteDance has also reiterated that China’s stake in the company has “no bearing on its global operations outside of China, including TikTok.”

The prospect of Musk’s involvement stems from his existing connections in China through Tesla’s operations and a proven track record in high-profile acquisitions. In 2022, Musk acquired Twitter for $44 billion, later rebranding it as X. However, analysts note that a TikTok acquisition would pose unique challenges, including the complex separation of its US business and securing financing, even for the world’s richest man.

The Bloomberg report also indicated that if Musk does not proceed with a deal, other potential bidders could include Microsoft, Oracle, and investor-led consortiums.

Meanwhile, China is reportedly keen on keeping TikTok under ByteDance’s control. Selling to a foreign entity would not only diminish China’s strategic leverage but could also set a precedent for other companies facing scrutiny abroad.

For TikTok creators and users, the stakes are high. A ban would likely force creators to migrate to platforms like YouTube or Instagram Reels, potentially benefiting companies like Meta and Google.

As TikTok faces mounting pressure from both the US government and its looming deadline, all eyes remain on ByteDance, Elon Musk, and the decisions that could shape the future of one of the world’s most popular apps.