Is Elon Musk in talks to take over TikTok’s U.S. business?

Chinese officials are reportedly engaging in early-stage discussions regarding a potential sale of TikTok’s U.S. operations to billionaire Elon Musk. This comes as the short-video app faces possible banning in the United States. According to Bloomberg News, Beijing officials prefer TikTok to stay under the control of its parent company, ByteDance.

The sale of TikTok’s U.S. operations could take place through a competitive process or a government arrangement. This signals the possibility that TikTok's future might no longer be solely linked to ByteDance, as China's government holds a "golden share" in the company. Some U.S. lawmakers argue this share grants Beijing influence over TikTok's operations.

Musk’s X Platform Involved?

One of the potential scenarios being explored is that Musk’s social media platform, X, could take control of TikTok’s U.S. business. However, the discussions are still in their infancy, and no agreement has been reached yet.

TikTok Responds to Speculation

A TikTok spokesperson has dismissed the report as "pure fiction." It remains unclear whether ByteDance is aware of these discussions or whether any talks have occurred involving TikTok, ByteDance, and Musk regarding a potential deal.

Uncertainty About Chinese Influence

TikTok has previously claimed that China's government stake in ByteDance does not affect its operations outside China, including in the U.S. Neither ByteDance, TikTok, Musk, X, nor Chinese authorities have offered additional comments on the matter.

US Supreme Court to Decide TikTok's Fate

The law that could ban TikTok in the US is scheduled to come before the Supreme Court on Friday. This case, which is expected to decide the app’s future, centers on national security concerns, particularly the risk of TikTok’s Chinese parent company, ByteDance, influencing content and user data sharing with the Chinese government.

The US government argues that TikTok’s data collection and algorithmic influence could fall under Chinese government control, posing a national security risk. TikTok counters that no evidence exists of such breaches, asserting the law violates the First Amendment.

If the Supreme Court upholds the ban, ByteDance may face a forced sale of TikTok’s US operations, but selling without its algorithm could lead to a fragmented version of the app. Many small business owners fear significant losses if TikTok shuts down.