As the US Supreme Court considers a ban on TikTok, Chinese officials are exploring contingency plans, including a potential acquisition by Elon Musk.
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While Beijing prefers TikTok to remain under the control of its parent company, ByteDance, the looming ban has prompted discussions about alternative scenarios. A deal with Musk, a prominent figure with close ties to the former Trump administration, is seen by some Chinese officials as a potential avenue for resolution.
Musk, who has publicly opposed the TikTok ban, has a strong relationship with the Chinese government through his successful Tesla operations in the country.
A potential acquisition by Musk’s X Corporation would offer several advantages, including a significant boost to X’s advertising revenue and access to TikTok’s vast user data for xAI, Musk’s artificial intelligence company.
However, several hurdles remain. The Chinese government’s involvement in the decision-making process, the complexities of separating TikTok’s US operations, and the potential regulatory challenges in both the US and China pose significant obstacles.
Furthermore, the valuation of TikTok’s US operations, estimated at $40-50 billion, presents a significant financial hurdle for any potential buyer, including Musk.
This situation underscores the intricate geopolitical and business dynamics surrounding TikTok’s future. While a deal with Musk remains speculative, it highlights the potential for unexpected outcomes as the US-China relationship continues to evolve.