TikTok has refuted a Bloomberg report suggesting that Chinese officials are considering facilitating the sale of TikTok’s U.S. operations to Elon Musk, branding the claims as “pure fiction.” The denial comes amid mounting pressure over a U.S. law set to take effect on January 19, which could effectively ban TikTok unless its Chinese parent company, ByteDance, divests its ownership.
Bloomberg’s report, citing anonymous sources, proposed a scenario where Musk, CEO of Tesla and SpaceX and owner of the platform formerly known as Twitter (now X), could acquire TikTok U.S. operations. The potential move is seen as a way to ensure TikTok remains operational in the U.S. under the new legislation. However, TikTok’s spokesperson dismissed the report when contacted by Variety.
The law, dubbed the Protecting Americans from Foreign Adversary Controlled Applications Act, would prohibit companies like Apple and Google from distributing TikTok unless ByteDance sells its U.S. operations to a non-adversarial party. Passed with bipartisan support and signed by President Biden, the legislation reflects growing concerns about the app’s Chinese ownership, with lawmakers citing national security risks and fears of surveillance or propaganda by the Chinese Communist Party (CCP).
Supreme Court Hearing
TikTok and ByteDance recently appealed to the Supreme Court to block the law, arguing it violates the First Amendment rights of TikTok’s 170 million U.S. users. While the justices deliberated on the case on January 10, they appeared more sympathetic to the government’s stance that TikTok poses a security threat due to its ties to Beijing.
ByteDance has not confirmed any plans to divest its stake in TikTok, and Chinese officials have previously indicated that such a sale would be blocked, citing it as an export of critical technology.
Musk’s Potential Role
The speculation around Musk stems from his $44 billion acquisition of Twitter in 2022, now rebranded as X. According to Bloomberg, one proposal being evaluated by Chinese officials would involve Musk’s X taking over TikTok’s U.S. operations and potentially integrating the two platforms. However, it remains unclear whether any formal discussions have taken place. Musk has not commented on the report.
Former President Donald Trump, now President-elect, previously attempted to force a sale of TikTok during his first term, citing similar national security concerns. In his transition to office, Trump has urged the Supreme Court to suspend the new law, advocating for a negotiated resolution to address security concerns while safeguarding Americans’ First Amendment rights.
As the January 19 deadline approaches, the future of TikTok in the U.S. hangs in the balance, with millions of users and billions in revenue at stake.
