Bloomberg: Beijing Mulls Musk TikTok Buyout Amid US Ban Threat

The potential sale of TikTok’s US operations is reportedly being considered as a contingency plan to circumvent a possible US ban, according to Bloomberg.

Bloomberg reported Tuesday that Chinese authorities are exploring the sale of TikTok’s US operations to Elon Musk as a potential solution to prevent an imminent US ban. TikTok has dismissed this report as “pure fiction.”

Sources indicate these discussions are in their early stages, with Beijing officials preferring ByteDance, TikTok’s Chinese owner, to retain control. However, the sale is being considered as a way to avoid a US ban, the report added.

The Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), signed last year by President Biden, mandates ByteDance to divest TikTok’s US operations by January 19, 2025, citing national security concerns. A failure to comply could impact over 170 million American users.

Reports of Chinese officials discussing a potential sale come amid heightened scrutiny of TikTok in the US, fueled by concerns about potential access to user data by the Chinese government—concerns TikTok consistently refutes.

Last week, the US Supreme Court heard arguments on the law that could force TikTok’s sale or closure, with justices seemingly inclined to uphold the legislation.

According to Bloomberg, one possibility involves Musk’s X acquiring TikTok’s US operations, valued at approximately $40 billion to $50 billion last year.

It remains unclear whether ByteDance or Musk are aware of the reported discussions among Chinese officials. Furthermore, there’s no confirmation of any direct talks between ByteDance, TikTok, and X regarding a potential deal, the report stated.

In response to Bloomberg’s report, TikTok stated it “can’t be expected to comment on pure fiction.”

The Chinese government holds a 1% stake, a “golden share,” in a ByteDance affiliate, providing influence over strategic decisions and operations. TikTok previously asserted this stake is a “common arrangement” under Chinese law and “has no bearing on ByteDance’s global operations, including TikTok.”