China In Talks To Sell TikTok USA To Elon Musk As Supreme Court Deadline For Ban Or Sale Approaches: Report

Chinese officials are reportedly in initial discussions about selling TikTok’s United States (US) operations to billionaire Elon Musk if the short-video app is unable to avert an impending ban, according to a Bloomberg report on Monday (13 January).

The proposed sale comes as TikTok faces growing scrutiny in the US over national security concerns tied to its parent company, ByteDance.

Beijing’s preference: ByteDance control

The report suggests that Chinese authorities favour TikTok remaining under ByteDance’s ownership, reflecting their vested interest in the platform. 

However, the possibility of a US government-mandated sale or alternative arrangement indicates that ByteDance's control over TikTok's future may be slipping.

ByteDance’s structure includes a “golden share” held by China’s government, a stake that some US lawmakers argue gives Beijing undue influence over TikTok. 

TikTok, however, maintains that the stake “has no bearing on ByteDance’s global operations outside of China, including TikTok.”

Elon Musk and X enter the picture

One scenario outlined by the report involves Musk’s social media platform, X (formerly Twitter), acquiring TikTok’s US operations and jointly running the business. 

Discussions remain at a preliminary stage, with no consensus among Chinese officials on the next steps. The extent of Musk’s involvement or ByteDance’s awareness of these talks is unclear.

A TikTok spokesperson dismissed the speculation, stating, “We can’t be expected to comment on pure fiction.” 

Representatives for Elon Musk, X, and China’s Cyberspace Administration and Ministry of Commerce have yet to respond to requests for comment.

But why is TikTok in such talks?

The potential sale comes as TikTok faces mounting pressure in the US Last week, the Supreme Court appeared poised to uphold a law requiring TikTok’s sale or ban by 19 January, citing national security risks linked to its ties with China.