Translated material
Chinese authorities are going to sell the American segment of TikTok to Elon Musk - Bloomberg
Chinese authorities are considering the possibility of acquiring the American segment of TikTok by Elon Musk if the company fails to avoid a ban on operating in the United States, according to a Bloomberg source familiar with the situation.
At the same time, Beijing prefers that TikTok remain under the control of its parent company, ByteDance Ltd. She is trying to challenge the ban in the US Supreme Court, but judges, judging by recent hearings, are inclined to support the law.
The Chinese government has already begun discussing possible plans if TikTok fails to protect its interests in the US, and one such plan includes selling the US business to Musk, the sources said. The deal with him, a close ally of former President-elect Trump, could prove attractive to China as TikTok could bolster the position of Twitter, which Musk calls X, in the U.S. advertising market thanks to its 170 million user base.
Discussions in China are still at a preliminary stage, and it is not clear how aware ByteDance is of the government's actions. It is also unknown whether negotiations have taken place between TikTok, ByteDance and Musk regarding a possible deal. Meanwhile, the billionaire previously said that he does not support a TikTok ban in the US, despite the fact that it could benefit his platform.
The sale of TikTok in the US could be valued at between $40 billion and $50 billion, a significant sum even for Musk, who bought Twitter for $44 billion in 2022 and continues to pay off large loans because of it.
Earlier, the Federal Court of Appeal in Washington rejected the owner of the Chinese social network TikTok's request to suspend the law banning it in the United States; the case was referred to the Supreme Court. In mid-December 2024, the European Commission began formal proceedings against TikTok on suspicion of violating the Digital Services Act. The reason was the alleged use of the platform to interfere in the presidential elections in Romania.