The Chinese government is reportedly deliberating on selling TikTok which is owned by ByteDance Ltd., to Elon Musk. This pensive decision came about as a result of the U.S. Supreme Court’s decision to ban the app effective January 19.
Local reports indicate that Beijing officials prefer TikTok to remain under ByteDance’s ownership. Though the company is currently appealing the impending ban to the U.S. Supreme Court, senior Chinese officials are exploring the sale as a contingency plan, as the Court signaled on January 10 that it is likely to uphold the ban.
If the sale proceeds, Musk’s company, X, could acquire TikTok’s U.S. operations, potentially integrating TikTok into its existing ad revenue framework.
Should the ban take effect, new users will be unable to download TikTok from Apple’s App Store or Google Play, though current users will retain access. Over time, TikTok would face degradation, as ByteDance would be unable to provide critical support services.
This development marks a significant moment in the ongoing scrutiny of TikTok by U.S. lawmakers, who have expressed concerns about data security and national sovereignty.
Donald Trump, who recently returned to the presidency, had initially favored a ban on TikTok during his first administration. However, his stance appears to have shifted. Last month, he urged the Supreme Court to delay the ban’s implementation to allow time for a “political resolution.”
ByteDance’s TikTok faces a challenging road ahead as political and economic considerations come to a climax. The potential acquisition by Elon Musk could reshape the app’s future in the U.S. market.
