Chinese Officials Reportedly Consider Sale of TikTok’s US Operations to Elon Musk

China’s government holds a “golden share” in ByteDance, a stake that some US lawmakers argue grants the Chinese Communist Party significant influence over the company. Under one scenario, Elon Musk’s social media platform, X (formerly Twitter), could take over TikTok’s US operations and manage the business collaboratively.

Washing D.C – Chinese officials are reportedly exploring the possibility of selling TikTok’s US operations to billionaire Elon Musk, as the popular social media platform faces an imminent ban in the United States.

According to a Bloomberg report, Beijing officials prefer TikTok to remain under the control of its Chinese parent company, ByteDance, but are considering alternative options, including a potential sale to Musk.

A TikTok spokesperson dismissed the report as “pure fiction” and reiterated the company’s stance that it will not sell its US operations.

TikTok has grown into one of the world’s largest social media platforms since surpassing Facebook, Instagram, Snapchat, and YouTube in app downloads in 2018. It now boasts 170 million US users. However, its popularity has drawn criticism from US lawmakers concerned about potential Chinese government influence over the app via ByteDance.

The US House of Representatives passed legislation in April that would require ByteDance to divest from TikTok or face a nationwide ban. Last week, the US Supreme Court appeared inclined to uphold this legislation, setting a January 19 deadline for compliance.

According to Bloomberg, TikTok’s US operations could be sold through either a competitive bidding process or a government-mandated arrangement. The report also suggested that ByteDance’s control over TikTok’s fate may now be limited.

China’s government holds a “golden share” in ByteDance, a stake that some US lawmakers argue grants the Chinese Communist Party significant influence over the company. Under one scenario, Elon Musk’s social media platform, X (formerly Twitter), could take over TikTok’s US operations and manage the business collaboratively.

It is unclear how much ByteDance, TikTok, or Musk are aware of these discussions. There is no confirmation that Musk, TikTok, or ByteDance have engaged in talks regarding a potential deal.

If Musk were to acquire TikTok, it would further consolidate his control over the US information ecosystem. Musk already owns X, which he acquired in October 2022. Although Musk initially pledged to make the platform politically neutral, he has since used it to promote right-wing content and campaign for former President Donald Trump.

Any acquisition of TikTok by Musk or another party would likely face scrutiny from US regulators, including the Federal Trade Commission (FTC) and the Department of Justice. Regulatory concerns may focus on competition and the implications of a single individual controlling such a significant share of the social media landscape.

Meanwhile, public reaction to a potential ban of TikTok remains uncertain. Influencer MrBeast, known for his content on TikTok competitor YouTube, joked on X: “Okay fine, I’ll buy TikTok so it doesn’t get banned.”

TikTok has previously insisted that China’s government stake in ByteDance does not affect its global operations, including in the US. Neither Musk, X, nor China’s cyberspace administration and ministry of commerce have commented on the report.