Chinese officials are reportedly exploring the possibility of selling TikTok's U.S. operations amid ongoing national security concerns. These discussions have been sparked by the U.S. Supreme Court's inclination to uphold a law that could mandate the sale or ban TikTok in the country by January 19. Bloomberg News has reported that Chinese officials are in preliminary talks with Elon Musk as a potential buyer, although it remains unclear whether ByteDance, TikTok's parent company, or Musk himself have engaged in any formal discussions regarding this potential deal.
The future of TikTok's U.S. operations hinges on a competitive sale process or government-arranged solution, as control seems to be slipping from ByteDance's grasp. Beijing prefers that TikTok remain under ByteDance's control, as the Chinese government holds a "golden share" in ByteDance, granting it significant influence over the company. However, this share does not affect ByteDance's global operations outside of China, which include TikTok.
Despite these developments, no consensus has been reached on how to proceed. The potential sale to Elon Musk's social media platform X would involve Musk taking control of TikTok's U.S. operations and managing them alongside his current ventures. However, it is still unclear how much ByteDance is aware of these discussions or if they have engaged in any conversations with Musk.
TikTok has faced growing scrutiny in the United States due to national security concerns linked to its Chinese ownership. In response to these issues, the U.S. government has been considering various measures, including a potential ban or forced sale.
A TikTok spokesperson dismissed the speculation regarding the sale talks, stating:
"We can’t be expected to comment on pure fiction."
Meanwhile, Elon Musk, X, and China's Cyberspace and Ministry of Commerce have yet to provide any official statements or respond to requests for comment.