Chinese authorities are reportedly considering selling TikTok’s US operations to Elon Musk as the platform faces an American law demanding Chinese divestment.
This information comes from a Bloomberg report citing unnamed sources.
The proposal suggested Musk’s company, X, formerly known as Twitter, could acquire TikTok from its Chinese owner, ByteDance.
TikTok’s US business is valued at an estimated $40 to $50 billion.
However, it remains unclear how Musk might finance the deal or if he would sell other assets to make it happen.
The US law, effective Sunday, mandates ByteDance to either sell TikTok or shut it down.
Washington accused TikTok of enabling Beijing to spy on users and spread propaganda, claims both China and ByteDance deny.
TikTok has challenged the law, bringing the case to the US Supreme Court, which heard arguments last Friday.
Although discussions in Beijing about a Musk acquisition are still at an early stage, Chinese officials are yet to agree on a course of action.
ByteDance’s awareness of these talks remains uncertain.
Musk, known for running Tesla and SpaceX, has strong ties to China, where Tesla operates a major factory.
This connection raises questions about his potential involvement in the TikTok deal amidst ongoing US-China tensions.
