Chinese government officials are exploring the possibility of Elon Musk acquiring TikTok's US operations if the platform cannot prevent an impending ban, Bloomberg reported Tuesday, citing people familiar with the discussions.
While Beijing officials strongly prefer ByteDance Ltd. to maintain ownership of TikTok, Bloomberg reported, they have begun evaluating backup options as part of broader discussions about working with President-elect Donald Trump's administration.
"In my opinion, TikTok should not be banned in the USA, even though such a ban may benefit the X platform," Musk wrote on X, Bloomberg reported. "Doing so would be contrary to freedom of speech and expression. It is not what America stands for."
One scenario under consideration involves Musk's X platform taking control of TikTok's US operations, which would combine the platforms' operations, Bloomberg reported. TikTok's US user base of more than 170 million could potentially boost X's advertising appeal.
Chinese Foreign Ministry spokesman Guo Jiakun declined to comment during a Tuesday press briefing, directing reporters to Beijing's previous statements. "We can't be expected to comment on pure fiction," a ByteDance representative said, according to Bloomberg.
The Chinese government maintains influence through a "golden share" in a ByteDance affiliate, though TikTok maintains this only applies to the China-based subsidiary Douyin Information Service Co., Bloomberg reported.
Bloomberg Intelligence analysts Mandeep Singh and Damian Reimertz estimated TikTok's US operations could be valued at $40 billion–$50 billion. The transaction's feasibility remains unclear, as Musk is still paying off loans from his $44 billion Twitter acquisition in 2022.
Supreme Court justices signaled support for security concerns over free speech arguments during January 10 deliberations, though no formal decision has been issued. President-elect Trump, who takes office January 20, has sought to delay the January 19 ban to continue negotiations, expressing his desire to "save" the application.
Alternative outlets exploring potential TikTok acquisition include a bid from billionaire Frank McCourt and "Shark Tank" investor Kevin O'Leary through Project Liberty, while Microsoft Corp. previously sought to acquire the business, and Oracle Corp. maintains a technology partnership with the company, Bloomberg reported.
