It turns out that Chinese authorities are considering selling TikTok to Elon Musk

With the TikTok ban on the horizon, Chinese authorities are considering selling TikTok's US operations to X owner Elon Musk in order to keep the company afloat.

China Weighs Sale of TikTok's US Operations to Elon Musk as One Possible Option - Bloomberg

The 'TikTok Ban Act' was signed into law by President Biden in April 2024. It includes provisions prohibiting companies from hostile nations from operating platforms, and since TikTok's parent company is the Chinese company ByteDance, TikTok was required to choose between 'ceasing to provide services in the United States' or 'selling its business in the United States.'

Regarding the 'business sale,' former Dodgers owner and billionaire Frank McCourt has come forward to buy the business.

However, TikTok has not given up on continuing its business, and while it is filing objections, it is urging users to switch to a similar app called 'Lemon8' developed by a different team.

According to the news site Bloomberg, Chinese authorities also want TikTok to continue under ByteDance's umbrella as a default course of action.

However, the US Supreme Court indicated that it was likely to uphold the law at the hearing on the challenge to the TikTok Ban Act held on January 10, 2025, so the authorities changed their policy. They are in discussions with the incoming Trump administration regarding TikTok, and one of the options is said to be selling the business to Elon Musk.

According to Bloomberg, citing sources, Chinese authorities have a scenario in which Musk's company, X, would acquire management rights for TikTok in the United States and jointly operate the business.

TikTok is estimated to have more than 170 million users in the United States, which could help X attract advertisers, and Musk's AI company, xAI, could benefit from the vast amount of data TikTok handles.

The 'sale proposal to Musk' is still in preliminary discussions and is merely a tentative proposal from the Chinese authorities, so it is unclear whether ByteDance is aware of it or whether Musk is involved.