China Weighs TikTok US Sale to Elon Musk, Says Bloomberg

Peter Thiel

Bloomberg News reported on Monday that the Chinese government is contemplating a strategy where Elon Musk could take over TikTok’s U.S. operations to prevent the app from being banned in the U.S. This contingency plan emerges as the U.S. Supreme Court deliberates on a law that mandates ByteDance, TikTok’s Chinese parent company, to divest its U.S. business by January 19. If the deadline passes without compliance, third-party internet service providers would face penalties for supporting TikTok in the U.S.

Under this proposed scenario, Musk would manage both X, his current social media platform, and TikTok’s U.S. operations. However, the plan, the report notes, remains in early stages, with no final decisions made by Chinese officials, and it’s uncertain if ByteDance or Musk are aware of these discussions. This proposal is part of broader considerations by Chinese officials on how to navigate TikTok’s future in the U.S., especially with the incoming administration of President-elect Donald Trump.

The issue has escalated to the Supreme Court following a law signed by President Joe Biden in April, aimed at addressing national security concerns related to ByteDance’s ownership of TikTok. TikTok’s legal team has argued that such a ban infringes on the free-speech rights of its U.S. users, while the government insists on the potential security risks associated with the app. The Supreme Court’s recent oral arguments suggest a tendency to uphold the government’s position, placing TikTok in a precarious position.

The dynamic could shift with Trump’s return to the White House on January 20, given his past stance on TikTok. Initially advocating for a ban, Trump has recently shown a change in perspective, urging the Supreme Court to delay the enforcement of Biden’s ban to seek a “political resolution.” This flip-flop from Trump might influence how the situation with TikTok unfolds under his administration.

This scenario highlights the complex interplay of technology, international relations, and politics. If Musk were to take over TikTok’s U.S. operations, it would be a significant pivot for him, merging his influence across different platforms and potentially altering the landscape of social media in the U.S.

The potential acquisition by Musk would also bring into question issues of data privacy, national security, and free speech, given his previous comments and actions regarding content moderation and platform governance. Additionally, this move could be seen as an attempt to mitigate U.S. concerns about Chinese influence over American data and media consumption through TikTok while still allowing the platform to operate under Musk’s stewardship, which has its own set of controversies and public perceptions.

As the situation develops, the outcome will depend heavily on the Supreme Court’s decision, Trump’s policies upon taking office, and how both the U.S. and Chinese governments maneuver in this high-stakes environment of tech diplomacy.

WallStreetPit does not provide investment advice. All rights reserved.

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