Chinese authorities are considering a possible scenario in which Elon Musk would buy the company’s US operations if TikTok is unable to resist a contentious ban on the short-video app,
Notably, TikTok has challenged the upcoming prohibition in the US to the Supreme Court. However, the justices have indicated that they are inclined to support the rule, which has caused Beijing to request other choices.
Beijing officials firmly believe that TikTok should continue to be owned by its parent business, ByteDance Ltd. The company is appealing the upcoming ban to the US Supreme Court. However, during the arguments of jan. 10, the justices gave a hint that they would probably enforce the legislation.
According to the report, senior Chinese authorities had already started discussing backup plans for TikTok as part of a larger conversation about how to cooperate with Donald Trump’s administration, which included Musk.
The Chinese government, which is anticipated to have some influence over whether TikTok is eventually sold, may find a possible high-profile agreement with one of Trump’s closest supporters appealing.
Musk contributed more than $250 million to Trump’s reelection campaign and has been asked to play a significant part in increasing government effectiveness if the Republican in office.
Musk would take over TikTok US and manage the companies jointly under one scenario that the Chinese government has explored. TikTok, which has over 170 million subscribers in the US, might help X in its attempts to draw in advertisers.
Musk also established xAI, a distinct artificial intelligence business that would profit from the vast volumes of data produced by TikTok.
Chinese authorities are still in the early stages of their discussions and have not yet come to a definitive agreement on how to move forward. It’s unclear whether TikTok and Musk have been participating in the Chinese government talks or how much ByteDance is aware of them.
Furthermore, it’s unclear if Musk, TikTok, and ByteDance have discussed the specifics of a potential agreement.
