Elon Musk could soon be taking the reins of TikTok’s US operations under a controversial new proposal from Chinese officials. With the app’s future hanging in the balance, this bold move has thrust Musk back into the spotlight.
TikTok, currently facing a potential ban in the US, could soon find itself under Musk’s control if a last-minute deal goes through. The US government, led by President Joe Biden, has made it clear that TikTok may be banned by January 19, 2025, unless major changes occur.
Geopolitical ramifications
This high-stakes drama has serious implications, not just for TikTok and Musk, but for US-China relations. ByteDance Ltd, TikTok’s parent company, is fighting the ban in court, hoping to avoid a disastrous shutdown. But with the US Supreme Court’s recent oral arguments, things are looking grim.
Supreme Court’s stance
The Court seems ready to uphold the ban, arguing that national security concerns outweigh TikTok’s First Amendment defense. The app’s legal team claims that banning TikTok violates Americans’ free speech, but the justices are focusing on the potential risks to US security.
In response, Beijing has devised a new strategy—one that could see Musk take control. Sources close to the matter have revealed that senior Chinese officials have been considering plans to hand TikTok’s US operations over to Musk’s company, X (formerly Twitter).
Musk’s perfect fit
TikTok’s massive user base—over 170 million Americans—would make it an enticing acquisition for Musk. Not only could X gain access to this vast audience, but TikTok’s treasure trove of user data could also fuel Musk’s artificial intelligence company, xAI. Such a deal could help X attract advertisers and increase Musk’s grip on social media, AI, and global trade.
Musk’s ties to Trump
Musk’s connections to former President Donald Trump could further complicate the matter. Having donated millions to Trump’s re-election campaign, Musk is seen as a potential ally to Trump’s administration. Musk has even publicly opposed banning TikTok, despite its competitive threat to X. In April 2024, Musk tweeted, “TikTok should not be banned in the USA. Doing so would go against freedom of speech.“
ByteDance’s struggle
But TikTok’s situation is precarious. ByteDance, the Chinese parent company, is under heavy pressure from the Chinese government, which holds a ‘golden share’ in ByteDance. This gives China significant influence over the company, including decisions about TikTok’s future. Beijing’s involvement in any deal could be a major obstacle, especially when it comes to TikTok’s coveted algorithm, which powers the app’s recommendation engine.
National security concerns
The US government has long feared that TikTok could be used to gather sensitive data on Americans, potentially funneling it to the Chinese government. The concern is that China could manipulate TikTok’s content, influencing users’ views and behaviors without them knowing. These security worries have spurred calls for the app’s removal.
The countdown to January 19
If TikTok’s US operations aren’t sold by January 19, the app will be banned. Under the law passed by Congress and signed by Biden, TikTok will be “shut down” in the US, with app stores like Apple and Google forced to pull it from their platforms. Existing users will still have access to TikTok, but without updates, the app will eventually become unusable.
Even if Musk emerges as the frontrunner in acquiring TikTok, complications abound. The logistics of spinning off TikTok’s US operations would be difficult, impacting both ByteDance and US shareholders. TikTok’s lawyers have already stated that such a sale would be “extraordinarily difficult.”
Other Contenders in the Race
Other high-profile bidders are also in the race. Billionaire Frank McCourt, investor Kevin O’Leary, and tech giants Microsoft and Oracle have all expressed interest in acquiring TikTok’s US business. A bidding war could complicate matters further.
Geopolitical poker
Despite these challenges, Beijing’s willingness to entertain Musk’s involvement underscores the geopolitical stakes at play. As the US and China brace for more tense negotiations, TikTok could become a key bargaining chip. Musk’s history of working with China, particularly through Tesla’s Shanghai operations, makes him a viable candidate to mediate between the two superpowers.
For now, all eyes are on the US Supreme Court, which is expected to make a final ruling soon. The future of TikTok, and possibly the US-China relationship, depends on what happens next.
Will Musk seize control of TikTok? Or will the app face its final days in the US? The next few weeks will decide.
