China Considers Selling TikTok’s U.S. Operations to Musk: Report

China Considers Selling TikTok’s U.S. Operations to Musk: Report

The Chinese government is reportedly exploring a contingency plan that involves Elon Musk acquiring TikTok’s U.S. operations to avoid a potential ban on the app, according to a report by Bloomberg News on Monday.

This proposal is one of several strategies under consideration as the U.S. Supreme Court deliberates on whether to uphold a law that mandates ByteDance, TikTok’s China-based parent company, to divest its U.S. operations by January 19. Anonymous sources cited in the report suggest that if ByteDance fails to comply by the deadline, third-party internet service providers could face penalties for supporting TikTok’s functionality within the United States, CNBC noted.

Bloomberg’s report outlines that the plan would involve Musk managing TikTok’s U.S. operations alongside his current platform, X. However, Chinese officials have yet to decide whether to pursue this preliminary idea.

It is unclear whether ByteDance is aware of these discussions or the proposal involving Musk. According to Bloomberg, senior Chinese officials are evaluating various contingency measures as part of broader negotiations that involve President-elect Donald Trump.

In response to these claims, a TikTok representative said via email to CNBC, “We can’t be expected to comment on pure fiction.” Meanwhile, X has not provided a comment on the matter.

Last week, the Supreme Court heard arguments over the legality of a law signed by President Joe Biden in April that could effectively ban TikTok. TikTok’s legal team argued that such a law violates the free speech rights of millions of U.S. users, while the government maintained that ByteDance’s ownership of TikTok presents significant national security risks.

As the Supreme Court appears poised to side with the government, TikTok may turn to President-elect Trump for assistance after his second term begins on January 20. Although Trump previously advocated for a TikTok ban during his first term, his position has reportedly shifted.

Late last month, Trump urged the Supreme Court to delay Biden’s ban to allow time for a “political resolution.” His shift in stance is attributed to a February meeting with billionaire Jeff Yass, a Republican megadonor and major ByteDance investor who also holds a stake in Truth Social, Trump’s social media platform, according to CNBC.

In a separate development, Elon Musk is under scrutiny from the outgoing SEC Chairman Gary Gensler. Earlier this month, Gensler reportedly threatened legal action against Musk unless he agreed to a monetary settlement within 48 hours.

Musk shared a letter on social media captioned, “Oh Gary, how could you do this to me?” The letter, written by Musk’s attorney Alex Spiro, accused the SEC of “more than six years of harassment” over matters relating to Musk’s 2022 acquisition of Twitter, now rebranded as X.

Spiro’s letter also demanded transparency, stating, “We demand to know who directed these actions — whether it was you or the White House.”

The SEC declined to comment on Musk’s claims. In a statement to The New York Post, the agency said, “It is the policy of the SEC to conduct investigations on a confidential basis to preserve the integrity of its investigative process. The SEC therefore does not comment on the existence or nonexistence of a possible investigation.”

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