The Chinese government is reportedly considering allowing Elon Musk to acquire TikTok's US operations and merge it with his social media platform X, should the US Supreme Court uphold a ban on the short-video app. If the deal goes through, X would take control of TikTok's US branch, which has around 170 million users, and the two platforms would be operated together. This merger could be valued at between billion and billion.

ByteDance, the parent company of TikTok, has denied commenting on these speculations, referring to them as "pure fiction" while continuing to fight the potential ban in court. The Chinese government, which has already signaled it would have a role in any potential sale of TikTok, is navigating complex negotiations with the incoming Trump administration over tariffs and export controls. Bloomberg noted that discussions with Musk, who has close ties with Trump, could offer a path for China-US reconciliation.

Experts like Richard Windsor, founder of Radio Free Mobile, have expressed doubt about China approving a sale of TikTok, citing concerns over keeping critical algorithms under foreign ownership. As the situation develops, the US Supreme Court justices are reportedly in favor of maintaining the TikTok ban, which is set to take effect on January 19, citing national security reasons. Meanwhile, US President Joe Biden signed a law in April 2024, which mandates ByteDance to divest from TikTok or face a nationwide ban.

Sources:

• Bloomberg
• Radio Free Mobile