Elon Musk in talks to acquire TikTok's US operations amidst tensions
Beijing authorities are examining the possibility of selling the American segment of TikTok to Elon Musk. Such a move could alleviate technological tensions between the US and China. ByteDance, the owner of TikTok, faces a challenge following indications from the US Supreme Court, which may uphold the ban on the app's operations in the US.
Musk, known for his investments in Donald Trump's campaign, is seen as a potential buyer. His experience in China and favourable reputation with ByteDance make him a credible candidate. The platform X, formerly Twitter, could acquire the American TikTok, which could benefit both services.
TikTok, the popular social media app, could be removed from the US 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 approximately £32-40 billion. Musk, who is paying off debts after purchasing Twitter, would need to find a way to finance the transaction. Beijing affects TikTok's future with a "golden share" in ByteDance and export regulations.
Ban on TikTok in the US? Trump is considering this option
Donald Trump, the president-elect, expressed a willingness to reconsider the ban on TikTok, which could impact the final decision regarding the app's future in the US. Despite TikTok's popularity among 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 it would violate free speech.
The debate over TikTok's future is occurring in government circles and among its numerous users. Critics of the bill argue that shutting down the platform threatens 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 on January 19, and Trump taking office on January 20, create pressure for a quick resolution.
Despite security concerns, TikTok remains extremely popular in the US, with around 124 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.
