Chinese officials are exploring various options for TikTok’s US operations if the popular short-video app faces a ban. One potential scenario under discussion is selling the US branch of TikTok to Elon Musk, a move that could align with Musk’s broader business ventures.
Beijing prefers that TikTok remains under the ownership of its parent company, ByteDance Ltd., and the company is actively contesting the looming ban in the US Supreme Court. However, the court proceedings suggest the law is likely to be upheld. As a precaution, senior Chinese officials have been debating alternative strategies, including engaging with the administration of Donald Trump, should he return to office.
One proposal involves Musk’s company, "X" taking over TikTok’s United States operations. Combining TikTok’s 170 million American users with X’s platform could create significant advertising opportunities. Additionally, Musk’s artificial intelligence firm, xAI, could leverage TikTok’s extensive data streams for further innovation.
Although the idea of a deal with Musk holds some appeal due to his ties to Trump and his influence in the tech world, Chinese officials have yet to reach a definitive decision. Discussions remain in the early stages, and it’s unclear whether ByteDance, Musk, or TikTok’s leadership have been directly involved in these talks.
For now, Beijing appears focused on retaining TikTok’s current structure while keeping options open in case negotiations with US authorities become necessary.
With TikTok boasting 170 million active users in the United States, the platform presents a golden opportunity for Musk to breathe new life into his social media platform "X" that has been facing challenges in retaining users and advertisers.
By integrating TikTok into X, Musk could unlock new advertising potential and diversify revenue streams, giving X the competitive edge it needs in the crowded social media landscape.
Beyond social media, the acquisition could also benefit Musk’s AI initiative, xAI. TikTok's immense repository of user data could be a game-changer for xAI’s chatbot, Grok. This data could help refine the chatbot's real-time search and response capabilities, making it smarter and more efficient. If Musk moves forward with this acquisition, it could mark a pivotal moment for both the tech industry and his ambitious ventures.