TikTok has firmly rejected a recent report suggesting that China might sell its US operations to Elon Musk’s social media platform X, calling the claim “pure fiction.” The video-sharing giant’s response came after Bloomberg News reported that Chinese officials were considering a potential sale of TikTok’s American arm to Musk, who owns X (formerly Twitter), as part of a broader strategy to comply with US legislation mandating Chinese divestment from the app.
The report, citing anonymous sources familiar with the matter, speculated that X could acquire TikTok from its Chinese parent company, ByteDance, and integrate the platform with its own operations. However, TikTok was quick to distance itself from the rumors, with a spokesperson telling AFP, “We cannot be expected to comment on pure fiction.”
Legal Pressure on ByteDance
The report comes amid growing pressure on ByteDance, as the US government has enacted a law requiring the company to divest its US operations due to national security concerns. The law, passed last year, is set to take effect this Sunday, just ahead of President-elect Donald Trump’s inauguration. The US has raised alarms that TikTok’s ties to Beijing could allow the Chinese government to access user data and use the platform for propaganda. Both China and ByteDance have strongly denied these allegations.
The US Congress’s legal action mandates that ByteDance either sell TikTok’s US operations or shut them down. TikTok is currently challenging this law in court, with the case having reached the US Supreme Court. During recent hearings, the majority of justices appeared skeptical of TikTok’s argument that the law violated First Amendment rights related to free speech.
Potential Deal and Musk’s Role
Bloomberg’s report speculated that, under one scenario, Musk’s X platform could acquire TikTok’s US business, with an estimated value between $40 billion and $50 billion. Despite Musk’s position as the world’s wealthiest individual, the report raised questions about how he might finance such a transaction and whether he would need to sell other assets to make it happen.
Musk, a close ally of outgoing President Trump, has influence in Washington, and his ventures, including Tesla, are heavily involved in the Chinese market. His electric car company operates a major factory in China, making the country a key market for Tesla’s global strategy. However, tensions between the US and China, particularly regarding trade policies and tariffs, have intensified under both Trump and Biden administrations.
Uncertain Future
While the possibility of a sale to Musk’s X platform remains speculative, the situation underscores the broader geopolitical and regulatory pressures TikTok faces in the US. As the legal battle continues, both TikTok and ByteDance will likely have to navigate complex international relations, including ongoing scrutiny over data privacy and security concerns.
As of now, Chinese officials have not reached a consensus on how to move forward with the potential sale or divestment of TikTok’s US operations, leaving the platform’s future in the country uncertain. TikTok’s stance remains clear, however—dismissal of the report as mere speculation, adding to the already volatile landscape of US-China tech relations.
Sources By Agencies
