Recent reports suggest that Elon Musk is in talks to acquire TikTok's US operations.
Billionaire Elon Musk, known for his ability to challenge industry norms, could be at the center of a major new deal. Sources suggest China is considering Musk as a potential buyer of TikTok's U.S. operations if the popular short video app is forced to change hands.
TikTok faces a possible ban in the country from January 19 if it is not sold to an American company, as required by law.
TikTok crisis timeline in the US
The developments involving TikTok have been intensifying, with crucial moments in recent months:
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April 24th 2024: President Joe Biden has signed a law requiring the sale or ban of TikTok in the United States, citing national security concerns related to its Chinese ownership. ByteDance, the app's developer, rejected the idea of a sale, but political and judicial pressure remained.
13 January 2025: Bloomberg reported that China has considered Elon Musk as a buyer for TikTok's U.S. operations, which analysts say could ensure the app remains competitive in the global market even under new management.
10 January 2025: The Supreme Court heard oral arguments on the sale requirement. Justices supported the law, emphasizing the importance of protecting American users' data from potential foreign interference.
ByteDance seeks record price for sale
If the sale of TikTok in the United States goes ahead, parent company ByteDance could demand an amount between US$40 billion and US$50 billion, according to an analysis by Dan Ives of Wedbush. This figure is in line with the figure of US $ 44 billion that Musk paid for Twitter (now known as X) in 2022.
The speculated price is well above the offer recently made by the consortium Project Liberty, who proposed approximately US $ 20 billion by the platform. This disparity in values demonstrates TikTok's influence and profit potential, even under intense political pressure.
Elon Musk: the ideal buyer?
Elon Musk, who surprised the world by acquiring Twitter, may now be considered the most viable candidate to buy TikTok.
His American nationality and track record as a global innovator make him a strategic choice for the Chinese government.
Furthermore, Musk's track record of turning money-losing companies into profitable businesses, as he did with Tesla, reinforces his ability to manage a complex platform like TikTok.
However, the sale would not be simple. ByteDance still prefers to maintain control over the platform, and negotiations, if they occur, promise to be difficult. In response to the speculation, ByteDance stated that it “does not comment on rumors or speculation”.
Why is TikTok under pressure?
The U.S. government argues that Chinese ownership of TikTok poses a national security risk. Officials fear that U.S. user data could be accessed by the Chinese government or used to manipulate public opinion.
Although TikTok has invested billions of dollars to strengthen data security in the United States, including the creation of local data centers, these measures have not been enough to convince American lawmakers and authorities.
Other proposals in play
In addition to Elon Musk, other interested parties have come forward as potential buyers of TikTok. Project Liberty, led by American investors, proposed not only to acquire the platform, but also to rebuild its digital infrastructure in the US, with a focus on privacy and security. However, the offer of US $ 20 billion is significantly below what ByteDance would consider acceptable.
Another competitor is the consortium led by Kevin O'Leary, known for the series “Shark Tank”. The group, called The People's Bid for TikTok, seeks political support, including that of President-elect Donald Trump, to make the acquisition possible.
The role of the Supreme Court
The final decision on TikTok’s future in the US rests with the Supreme Court, which is currently weighing the legality of requiring the sale or ban. In January 2025, the court heard arguments from the parties involved, with the justices apparently leaning toward upholding the law requiring the sale.
For TikTok, the situation is urgent. The platform argues that a ban would be a significant blow to its millions of users in the US and would undermine its freedom of operation. However, lower courts have already ruled against TikTok, prioritizing national security concerns.
Challenges for Musk
If Elon Musk decides to enter the race, he will face significant challenges. The first is the price itself.
While the billionaire has already shelled out $44 billion for Twitter, the financial impact of acquiring TikTok for a similar or higher amount could be substantial. On top of that, Musk will need to deal with the operational transition and legal challenges that come with the app.
Another hurdle will be political resistance. Despite his strategic position, Musk will have to convince U.S. lawmakers and regulators that he can run TikTok safely and efficiently.
Possible scenarios for TikTok
If the sale goes through and Musk becomes the buyer, TikTok could usher in a new era of innovation, possibly incorporating features from Twitter or even Tesla. However, if the sale doesn’t go through and the app is banned, it would be a blow to its millions of American users, as well as the content creators and advertisers who rely on the platform.
Meanwhile, the consortium Project Liberty and other groups continue to push for the acquisition, but they must deal with the disparity in values demanded by ByteDance.
This is USA ****.
This is US repression, repression of freedom.
I wouldn't buy Tik Tok, at least in Brazil people watch videos more than create content. The United States should make an American Tik Tok. I wouldn't give all that money to the Chinese.