Elon Musk in talks to acquire American TikTok from ByteDance
Beijing authorities are considering selling the American segment of TikTok to Elon Musk. Such a move could ease technological tensions between the U.S. and China. ByteDance, the owner of TikTok, faces a challenge following signals from the U.S. Supreme Court, which may uphold the ban on the app's operations in the U.S.
Musk, known for his investments in Donald Trump's campaign, is seen as a potential buyer. His experience in China and positive reputation with ByteDance make him a credible candidate. The platform X, formerly known as Twitter, could acquire the American TikTok, benefiting both services.
TikTok, the popular social media app, faces the threat of disappearing from the U.S. market unless its owner, ByteDance, agrees to sell it. President Biden's administration expresses concerns over national security, pointing to potential Chinese influence on user data.
The law concerning the sale of TikTok is considered controversial due to the potential violation of free speech.
The American segment of TikTok is valued at 50-65 billion CAD. Musk, who is paying off debts after purchasing Twitter, would need to find a way to finance the transaction. Beijing influences TikTok's future with a "golden share" in ByteDance and export regulations.
Ban on TikTok in the U.S.? Trump is considering this option
Donald Trump, the president-elect, expressed a willingness to reconsider the ban on TikTok, which could affect the final decision regarding the app's future in the U.S. Despite TikTok's support by young voters, an appeals court found the ban constitutional if the app remains under Chinese management. ByteDance is preparing to appeal to the Supreme Court.
Other scenarios include a competitive sale process involving other investors or transferring users to a new app. ByteDance continues the legal battle, which remains a priority for the company. Musk opposed the ban on TikTok, arguing that it would violate free speech.
The debate over TikTok's future is taking place not only in government circles but also among its many users. Critics of the bill note that shutting down the platform poses a threat to millions who use TikTok as a tool for work, entertainment, and communication. Sources of income for many content creators could also disappear.
Chinese Ministry of Foreign Affairs refuses to comment
ByteDance describes reports of a sale as "pure fiction," and the Chinese Ministry of Foreign Affairs refuses to comment. The impending deadline for the ban is January 19 at 9:00 PM EST, and Trump's inauguration on January 20 creates pressure for a quick resolution.
Despite security concerns, TikTok remains extremely popular in the U.S., with 170 million users. The risk of control by the Chinese government remains a key argument for the president's administration to act.
The situation is dynamic, and its development largely depends on court decisions and Donald Trump's stance after taking office on January 20.
