Chinese Officials Consider TikTok Sale to Elon Musk as US Ban Deadline Approaches
Chinese officials are reportedly considering selling TikTok's U.S. operations to Elon Musk as the January 19th divestment deadline approaches. This development comes amid increasing pressure for TikTok to either sell its U.S. operations or face an effective shutdown in the country.
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According to The Wall Street Journal, unnamed Chinese government officials are in preliminary discussions about potentially selling TikTok's U.S. operations to Musk, who they consider a "trusted" buyer. This consideration is particularly significant as Beijing holds an ownership stake in ByteDance, TikTok's parent company.
Key points about the potential sale:
- The Supreme Court is expected to rule on the ban law's constitutionality, with justices appearing to favor keeping the measure in place
- ByteDance has already received at least one formal bid for TikTok's U.S. operations
- Musk's existing relationship with China, including Tesla's Shanghai factory, could make him an attractive buyer
- The Chinese officials' discussions haven't yet been presented to top leadership
However, TikTok has dismissed these reports, with a company representative calling them "pure fiction." Business mogul Kevin O'Leary, whose People's Bid has submitted a TikTok buyout offer, believes regulatory scrutiny would likely deter Musk from pursuing the acquisition.
The situation remains fluid as the January 19th deadline approaches, with multiple scenarios still possible, including a potential 90-day extension from President Biden or a court order blocking the sale deadline.
Despite the uncertainty surrounding its U.S. operations, TikTok continues to maintain its promotional initiatives both domestically and internationally while pursuing various legal and public relations strategies to oppose the forced sale.