Tiktok Says Report of Possible Sale to Musk 'Pure Fiction'

 

TikTok has dismissed reports suggesting that Chinese officials are considering selling its U.S. operations to Elon Musk as "pure fiction." This response follows a Bloomberg News article claiming that Beijing might contemplate such a sale if TikTok cannot avert an impending U.S. ban.

The U.S. Supreme Court is currently deliberating on a law that mandates TikTok, owned by China's ByteDance, to either divest its U.S. operations by January 19, 2025, or face a nationwide ban. The law stems from national security concerns, with U.S. lawmakers alleging that TikTok could be exploited by the Chinese government for espionage or political manipulation—claims that TikTok has consistently denied.

Bloomberg's report suggested that Chinese officials prefer TikTok to remain under ByteDance's control. However, if a sale becomes unavoidable, one scenario involves Elon Musk's social media platform, X (formerly Twitter), acquiring TikTok's U.S. operations. The report indicated that these discussions are preliminary, with no consensus reached, and it's unclear whether ByteDance or Musk are aware of them.

TikTok's spokesperson responded to these claims by stating, "We can't be expected to comment on pure fiction."

 The company has repeatedly asserted that it has no plans to sell its U.S. operations.

The potential ban has significant implications, as TikTok boasts approximately 170 million users in the United States. The Supreme Court's decision is anticipated to have far-reaching effects on these users, many of whom rely on the platform for social interaction and economic activities.

In the political arena, President-elect Donald Trump has expressed a desire to delay the Supreme Court's decision. He has requested a postponement until after his inauguration on January 20, aiming to seek a "political resolution" to the issue. His legal team filed a brief stating that Trump "opposes banning TikTok" and prefers to address the concerns through political means once in office.

This development follows a meeting between Trump and TikTok's CEO, Shou Zi Chew, at the Mar-a-Lago estate in Florida. The details of their discussion remain undisclosed, but it underscores the high-level attention the TikTok situation is receiving.

Meanwhile, other potential buyers have shown interest in TikTok's U.S. operations. "Shark Tank" star Kevin O'Leary and billionaire Frank McCourt are part of a consortium that has submitted a bid to ByteDance. Their proposal aims to transform TikTok into a decentralized social media platform, granting users more control over their personal data. However, ByteDance has maintained that it has no plans to sell TikTok.

 

The Chinese government's stance adds another layer of complexity. Beijing holds a "golden share" in ByteDance, providing it with certain decision-making powers. Chinese officials have expressed a preference for TikTok to remain under ByteDance's control, opposing a forced sale. This position could influence any potential transaction involving TikTok's U.S. operations.

As the January 19 deadline approaches, the future of TikTok in the U.S. hangs in the balance. The Supreme Court's forthcoming decision, along with the incoming administration's policies, will play pivotal roles in determining whether TikTok continues to operate in the United States or is compelled to undergo significant ownership changes.