New York, United States:
There are discussions happening in China about the potential sale of US TikTok operations to billionaire Elon Musk as the video-sharing platform faces pressure to divest from its Chinese ownership, according to a report by Bloomberg News on Monday.
Anonymous sources familiar with the matter revealed a scenario being considered in Beijing where Musk’s social media company X would acquire TikTok from its Chinese owner ByteDance and integrate it into the platform formerly known as Twitter.
The report estimated the value of TikTok’s US operations to be between $40 and $50 billion.
Although Musk is currently the world’s wealthiest person, Bloomberg noted that it is unclear how he would navigate the transaction or if he would need to liquidate other assets.
A law passed by the US government last year mandates that ByteDance must sell TikTok or shut it down. This law is set to go into effect on Sunday, just a day before President-elect Donald Trump assumes office.
The US government has raised concerns that TikTok could be used by Beijing to collect data, spy on users, and disseminate propaganda. China and ByteDance have vehemently denied these allegations.
TikTok has challenged the law and even appealed to the US Supreme Court, which recently heard arguments on the matter.
During the hearing, justices expressed skepticism about TikTok’s claims that selling the platform would violate free speech rights under the First Amendment.
Beijing’s contemplation of a potential deal with Musk is still in the early stages, with Chinese officials yet to reach a consensus on the matter, as per Bloomberg.
ByteDance’s level of awareness regarding the Chinese government’s deliberations remains unclear.
When asked for comment, a TikTok representative told Variety, “We can’t be expected to comment on pure fiction.”
Musk, a close ally of Trump, is expected to wield influence in Washington in the coming years. He also heads Tesla, a prominent electric car manufacturer with a significant presence in China.
Trump has repeatedly threatened to impose tariffs on Chinese goods, escalating the trade war that began during his presidency and was upheld, and in some cases expanded, by outgoing President Joe Biden.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
